HMRC Squeeze Rates on Tax Incentivised Cars

HMRC have just announced that from 1st April 2018 they are reducing the CO2 thresholds below which car purchases qualify for 100% first year allowances and for the main 18% allowance.

At present, 100% fya is available on car purchases where CO2 emissions are no more than 75g/km, and the cut-off between 8% and 18% allowance groups is 130g/km.

If you are due to change cars in the next year or two, you may want to secure your tax point as being prior to 1st April 2018 if your new car is then going to fall outside of the new limits of 50g/km and 110g/km respectively.