Peugeot 206 & 307 Help Company Fleets Beat The Taxman

Peugeot 307

 

With the recent introduction of a new tax rule by the Inland Revenue aimed at reducing pollution, Peugeot can now help business customers save money, thanks to its low emission, fuel efficient vehicles, the 206 and 307.

Businesses purchasing vehicles with CO2 emissions of 120g/km or lower can claim ALL the tax relief on the list price immediately, rather than receiving it on a reducing balance basis over nine years. This represents a great advantage to their cashflow.

Peugeot vehicles which meet this criterion are:
  • All 206 1.4 HDi engine hatchbacks
  • All 206 Eco HDi hatchbacks
  • 206 SW 1.4 HDi XL and XT
  • 307 1.4 HDi hatchbacks
Motor vehicles qualify for capital allowances as if they were ‘plant’ and assumes that a company owns them as assets. In this instance the cars are taxed on a ‘pooled’ basis to which a 25% writing down allowance is applied each year. For more ‘expensive’ cars (costing over £12,000) the allowance is restricted to this value, ie 25% x £12,000 = £3,000. For a company holding motor vehicles as assets, the new benefits for cars with 120g/km CO2 or less means that:
  • The full 100% allowances can be claimed in year one, aiding cashflow through a reduced tax charge. For companies holding vehicles over two, three or four years, this is quite an advantage.
  • The £12,000 restriction does not apply.
Darren Smith, fleet marketing manager at Peugeot says: "With our highly efficient 1.4 HDi engine producing between 117 and 120g/km of CO2, depending on the size of the vehicle, we are able to offer fleet customers practical, comfortable and stylish vehicles which will actually save them money. For example, on the 307 1.4 HDi LX, the on the road price is £12,630 which enables companies to write down the full allowance of £3,157.50 in the first year." Published 11 March 2003 Melanie Carter
 

The information contained this Peugeot news article may have changed since publication on the 11 March 2003. Our car specifications, reviews, and prices may only apply to the UK market. You may wish to check with the manufacturer or your local Peugeot dealer, before making a purchasing decision. E.&.O.E. You may NOT reproduce our car news in full or part, in any format without our written permission. carpages.co.uk © 2017