Modernising tax relief for business expenditure on cars: draft guidance on legislation introduced by FA 2009
Readership
This Revenue & Customs Brief is of interest to all businesses that buy or lease cars or that sell or lease cars to other businesses.
Background
Following consultation, at Budget 2009 the Government announced that the rules for capital allowances for cars and the associated rules restricting deductions for lease rentals were to be abolished and replaced by new rules from 1 April 2009 (for Corporation Tax purposes) or 6 April 2009 (for Income Tax purposes).
The Capital Allowances Manual and Business Income Manual are to be updated to reflect the new rules and the transitional arrangements. The draft guidance is being published with this brief for comment.





