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
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
- 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 : 11/03/03 Author : Melanie Carter
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