The 100% allowance is due to expire on 31st March 2013. For cars registered between 17th April 2002 and 31st March 2008 the emissions limit remains at 120g/km. Cars that are electrically propelled qualify for a 100% allowance automatically.
Expenditure on cars of more than £12,000 incurred up to 5th April 2009 (or 31st March 2009 for sole traders) will continue to be subject to the old rules for a transitional period of just over 5 years. This should allow plenty of time to take advantage of the large balancing allowances that would normally arise under the old rules when an expensive car was sold.
If you lease a car rather than buying it outright, you claim the lease
rentals against tax rather than capital allowances, subject to a
restriction for vehicles valued at more than £12,000 and leased before
the commencement of the new rules. For cars leased since April 2009, the restriction is now based on CO2 emissions. For cars with emissions
up to 160g/km you can claim 100% of the lease rentals. Above this
limit you can now only claim 85% of the lease rentals. Most people are
actually better off under the new rules as the breakeven value is
£17,145.
