WHAT are the Enhanced Captial Allowances for green cars?
Well, a cars’ Eligibility for Enhanced Capital Allowances (ECA) is based on its CO2 emissions.
So, for example, a car emitting 130g/km qualifies for the standard allowance – called a‘writing down allowance’ – of 8% a year, for the value to be offset against income.
However, if your new company car emits 95 g/km or less, it will qualify for a 100% first-year allowance.
Keep in mind, if you’re looking for a new vehicle, that this threshold will change to 75g/km in March 2015.
Zero-emission goods vehicles also qualify for 100% first-year allowances until March 2015. This is shortly due to be extended to 2018.
Currently the rate in force for the year that the vehicle is purchased, is used for the entire period of ownership although this could change in future.
Companies that install gas refuelling equipment for vehicles that require natural gas, hydrogen or biogas are also eligible for 100% first-year allowances until March 2015 and this date is expected to be extended until March 2018.
Eligible equipment can include:
- storage tanks
- controls and meters
- gas connections
- filling equipment