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Leasing opportunity for dealers

Dealers could benefit from an anomaly in the new Capital Allowance rules which means some high-polluting cars will be cheaper for customers to lease.


Retailers' corporate sales teams should be poised to inform business clients that some flagship models have seen a reduction in the corporate tax bill.

The intention of the rules was to encourage company car drivers into lower-emitting vehicles.

The previous tax system took into account a car’s price.

However, now it is based on its CO2 emissions.

Cars that emit under 160g/km of CO2 are now cheaper to lease under the new rules.

However, expensive high-polluting cars such as the Jaguar XK convertible, which is powered by a 5-litre V8 petrol engine that pumps out 264g/km CO2 are also cheaper.

Lloyds TSB Autolease said a company driver that opts for a Jaguar will slash £71 a month off the company’s tax bill.

Several premium cars also offer significant tax savings under the new rules.

The Range Rover is now £51 cheaper a month to lease, the BMW 7-Series is £52 cheaper and Mercedes-Benz R-Class £50 cheaper.

“The switch to the new CO2-based corporation tax system rightly encourages more company car drivers to choose cleaner cars, but a strange anomaly is that a few very desirable badges are also much more appealing in tax terms than they have been before,” explained Mark Chessman, deputy managing director of Lloyds TSB Autolease.

“Some choices like the Jaguar XK convertible will save firms more than £2,500 over the course of an average company car lease which, for some status driven executives, will be too good to ignore.”


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