"Green" car tax relief closing soon.....

clipboard2 · 13 December 2007 at 11:09PM

Just a timely reminder.....

If you are self-employed, or run a business, and buy a new "green" car before 31 March 2008, you can claim 100% capital allowance on your expenditure for the first year.

For example, if you spend £10,000 on a new "green" car, and you are a higher rate taxpayer, your tax bill will be reduced by £4,000 that year.

The details of the scheme are here:
www.hmrc.gov.uk/capital_allowances/cars.htm

A "green" car is defined as one which emits 120gm CO2/km or less. Tables of qualifying cars can be found here:
www.vcacarfueldata.org.uk

A and B band cars like these are becoming increasingly popular, and are likely to have to be factory ordered which means a wait of around 8-10 weeks.
Hence there is not much actual time left to benefit from the taxman's generosity if you are planning on buying a new car anyway.

And, band A and B cars are soon to be 100% exempt from London's congestion charge from February, hence surge in demand.

Hope this helps you pay less tax!