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Lease Rental Restriction

From April 2021 - based on CO2 Emissions

Contract entered into between April 2021, tax relief for leased car is limited to the CO2 Emissions as follows:

CO2 Emissions

Allowed rentals

Disallowed rentals

50 g/km or below 100% 0%
Above 50 g/km 85% 15%

For Corporation Tax purposes, the thresholds noted above apply for cars leased on or after 1st April 2021. For Income Tax purposes, the thresholds apply for cars leased on or after 6th April 2021

 

From April 2018 to March 2021 - based on CO2 Emissions

Contract entered into between April 2018 to March 2021, tax relief for leased car is limited to the CO2 Emissions as follows:

CO2 Emissions

Allowed rentals

Disallowed rentals

50 g/km or below 100% 0%
Above 50 g/km 85% 15%

For Corporation Tax purposes, the thresholds noted above apply for cars leased on or after 1st April 2021. For Income Tax purposes, the thresholds apply for cars leased on or after 6th April 2021