Changing capital allowances for company carsCars purchased or leased by companies from July 1st onwards will no longer qualify for capital allowances if they have a carbon emission figure greater than 190g/km.
The new system only relates to cars purchased or leased after July 1st. Of the cars bought after that date, only those with emissions up to 155g/km will benefit from capital allowances at the current car value threshold of €24,000, regardless of the car's cost.
Those with emissions levels of 156g/km to 190g/km will receive 50 per cent of the current value threshold or 50 per cent of the cost of the car, if lower. New cars with emissions in excess of 190g/km will no longer benefit from any allowance.
With new cars leased from July 1st, expenses involved for those with emissions up to 155g/km will rise to a limit of €24,000.
Those cars leased with emissions between 156g/km and up to 190g/km will qualify for a 50 per cent allowance on the leasing expenses.
Cars with emissions over 190g/km will no longer qualify for a deduction.
EU may change CO2 focus to smaller cars
The European Commission may shift the burden of cutting average CO2 emissions more on to small cars.
Weekend reports in German newspaper Frankfurter Allgemeine Zeitung, quoting an internal EU paper, said the Commission was requiring manufacturers of smaller models to cut CO2 emissions at a higher rate in order for the EU to achieve its average target by 2012.
The executive is due to adopt regulations on December 19th on how to enforce an average CO2 limit of 120g/km by 2012.