Capital Allowances

   Capital Allowances

Manufacturer


Range


Model


Options





GETTING STARTED

To see how long it takes to get tax relief for your company car, just select a car and add any factory fitted options you want.

We'll show you the:

Capital allowances will change from April 2021, click here for an explanation.

Click on the 'View Allowances' button to see the current detailed capital allowances calculation.


595 HATCHBACK


Pricing:
List Price £15,989.00
Cost of Options £0.00
Delivery charges £726.00
Taxable List Price(P11D Value) £16,715.00
Registration Fee £55.00
1st Year Tax Disc £0.00
Capital Allowance Factors:
CO2 Output 0GPK/m
Capital Allowances Rate 100%
Capital Allowances Pay-back 5 years

Replacement
(Years)



Total
Miles



O-T-R
Price



Residual
Value




1.4 T-Jet 145 3dr


 Calculator



Capital Allowances Calculation*


We've calculated the capital allowances for your selected car based on its replacement cycle and the total mileage travelled.

Changing the calculation

You can change the replacement cycle or the total mileage using the selection boxes.

You can also change the On-The-Road Price of the vehicle or the forecast residual value (these affect the capital allowances granted).

Just type a new amount into either the 'O-T-R Price' or 'Residual Value' boxes. Press the 'Enter' key after each change to update the calculation.

We'll automatically adjust the total O-T-R Price for the tax disc which, although it has to be included in the O-T-R Price, isn't included in the capital allowances calculation.

Scroll down to see how the capital allowances are calculated each year.





ANNUAL CAPITAL ALLOWANCES



Swipe left/right on the analysis or use the scroll bar at the bottom of the table to view the results


This vehicle should qualify for accelerated 'First Year Allowances'

A
Year
B
Purchase
Price/
Brought
Forward
Value
C
Sales
Proceeds
D
Capital
Allowances
For
Year
E
Carried
Forward
Value
(B-C)
116,770.000.0016,770.000.00
20.000.000.000.00
30.000.000.000.00
40.000.000.000.00
50.005,575.00-5,575.000.00
Totals16,770.005,575.0011,195.00 


Column A: Year of purchase price/capital allowances
Column B: Purchase price/amortised value brought forward
Column C: Sales proceeds on disposal
Column D: Capital allowances for the year.
Column E: Net value carried forward

Minor differences may appear in the column totals
due to rounding of the individual column values.




 Important!

We have simplified the above example - it assumes just one asset (the car) is owned by the business.

When calculating capital allowances, the value of a car is normally pooled with the value of all the other assets owned by a business.

This includes cars, equipment, tools etc (unless the business accounts are prepared on a cash basis or the car has a CO2 output over 110GPK/m).

However, the overall effect of pooling is the same as our example above in terms of spreading capital allowances over an extended period well beyond the working life of the car.

The only current exception to this is cars with a CO2 output below 50GPK/m, which qualify for accelerated capital allowances known as 'First Year Allowances'.

100% of the capital cost of the car is allowed as a tax deduction in the tax year of purchase.

Residual values are based on information from our data partner CAP-HPI.

The example on this page simplifies the capital allowances calculation.

It ignores 'pooling', special first year allowances and private use by the self-employed/partnerships, but it does demonstrate the key principles and in particular the lengthy period over which business car expenditure is written-off for tax purposes.

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Contact

0330 444 0400
(+44 1792 224319 outside UK)

info@drivesmart.co.uk