Capital Allowance on Vehicles

frank · Apprentice Joined: 19 Jun 2007 Posts: 3

I inherited a small business from my father last year. It’s quite interesting one, with few employees working as a team together. They are all very loyal to the firm and I recently started considering the idea of buying few business owned cars for my employees. Of course, although the cars will be used for their private use also, the primary idea is to obtain new business cars, for business use. Is there any possibility to obtain capital allowance for those vehicles?

rosaline · Apprentice Joined: 24 Nov 2006 Posts: 4

Rewarding employees for their hard work is very rare today, and I want to congratulate you for being different. There is possibility of obtaining a capital allowance on company vehicles, which will give you the relief for business cars. It is better to buy low emission cars, I believe that the allowance is higher in that case. There is also possibility to return 100% of the first year allowances on low emitting cars.