New corporate tax rules introduced by the Government aimed at encouraging fleets to operate ‘clean’ cars, means Mazda can help businesses save money.
Until 31 March, 2008 all businesses can claim a first year allowance of 100% (enhanced capital allowances) on the operation of business cars which emit not more than 120 g/km of carbon dioxide (CO2).
Capital allowances give tax relief for the depreciation in the value of an asset, spread over a number of years – typically 25% a year on a reducing-balance basis. However, the special concession for low-emission cars is designed to boost the fleet take-up of ‘clean’ cars.
With this month’s launch of the tax-efficient, low-emission Mazda2 1.4 common rail direct injection five-door supermini, businesses can claim all the tax relief on the list price immediately.
Emitting 119 g/km of CO2, the three-strong Mazda2 diesel range includes the 1.4S costing £9,695 on-the-road, the 1.4 TS (£10,495) and the 1.4 TS2 (£11,495). And while businesses are benefiting, company car drivers also cash-in as the model is in the lowest possible benefit-in-kind tax bracket through to April 2005.
Mazda fleet and remarketing director Jeremy Thomson said: ‘The new capital allowance rules represent a considerable advantage to a company’s cashflow. For fleets operating cars over a typical three or four-year replacement cycle the tax concession is particularly advantageous.
‘Just as the Mazda6 is winning fleet praise we believe the environmentally-friendly Mazda2 will be highly sought after due to a class-leading combination of pricing, tax efficiency, specification, driving dynamics and handling.’
The 68 bhp engine returns 62.8 mpg on the combined cycle, making the diesel Mazda2 one of the most fuel-efficient superminis on sale in the UK.
List prices for the Mazda2 are lower than many of its rivals, but low price does not mean low-spec as, for example, TS models feature as standard a CD player, electric front windows, ABS and twin front airbags.
Mr Thomson added: ‘Price and tax efficiency coupled with class-leading specification means that the Mazda2 is a new fleet force in the fast-growing supermini sector.’Published 6 April 2003