New fiscal CO2 measures for company cars
New fiscal measures for company cars depending on CO2-emission as from 1 January 2010
In the contest of preparing its for 2010-2011 the government announced a number of new
taxation measures in relation to company cars.
More details have since emerged.
It should to be emphasised that the current draft still has to be approved by Parliament and
therefore this information is subject to confirmation.
New rates are being introduced from 1 January 2010 in the corporation tax system for the variable fiscal deduction in respect of passenger cars, in line with their CO2 emissions.
Diesel vehicles
The existing limits are maintained for vehicles powered by diesel engines with the exception of two modifications:
- the deduction is further restricted for vehicles with emissions greater than 195 grams and for vehicles whose CO2 emissions are not known. The deduction restriction is reduced from 60% to 50%.
- the 70% deduction will only apply to vehicles with emissions between 146 g/km CO2 and 170 g/km CO2. The upper limit was previously 175 g/km CO2.
Petrol vehicles
All rates have modified and increased for vehicles with a petrol engine
Vehicles with zero CO2 emissions
Vehicles with zero CO2 emissions (in practice, this means 100% electrically powered vehicles), enjoy an increased deduction of 120% from 1 January 2010.
Vehicles with CO2 emissions of no more than 60 g/km.
Both petrol and diesel vehicles with emissions of no more than 60 g/km shall from 1 January
2010 benefit from a fiscal deduction of 100%. Such vehicles are not available on the market at
this time. It is thought that plug-in hybrids and very clean diesel vehicles may meet this
standard in the near future.
Table valid to 31 December 2009 for corporation tax
|
CO2 diesel |
CO2 petrol |
Tax deduction |
|
< 105 grams 105 to 115 grams 116 to 145 grams 146 to 175 grams > 175 grams |
< 120 grams 120 to 130 grams 131 to 160 grams 161 to 190 grams > 190 grams |
90% 80% 75% 70% 60% |
Table valid from 1 January 2010 for corporation tax
|
CO2 diesel |
CO2 petrol |
100% electric |
Tax deduction |
|
O to 60 grams 61 to 105 grams 106 to 115 grams 116 to 145 grams 146 to 170 grams 171 to 195 grams > 195 grams |
O to 60 grams 61 to 105 grams 106 to 125 grams 126 to 155 grams 156 to 180 grams 181 to 205 grams > 205 grams |
0 gram
|
120 % 100% 90% 80% 75% 70% 60% 50% |
Accelerated capital allowances and increased investment deduction for charging stations
Businesses that wish to install a charging station for electric vehicles or plug-in hybrids receive increased investment deductions. On the basis of current rates, this means that an investment deduction of 15.5% can be claimed in addition to the normal capital allowances of 100%. Investments in charging stations made during the period 2010 – 2012 benefit from an accelerated writing-down period of 2 years. The period may be extended following evaluation.
Fuel card 75% deductible for personal and corporation tax
The deductibility of fuel cards will be restricted to 75% from 1 January 2010. This measure applies to both personal and corporation tax. Some interest charges and costs for installed mobile phones (telephone and hands-free kit) remain 100% deductible in both tax systems.
LeasePlan Tips
- The new legislation regarding the social contribution is the ideal occasion for you to analyze the situation of your fleet. Contact your account manager for an evaluation.
- A non-polluting car can help you save money. Due to our GreenPlan Program, you can adapt your car policy for it to be both environmentally friendly and cost efficient.
