In Depth

Move fast to maximise relief on low CO2 vehicles

If you act fast you can still claim 100 per cent tax relief on low emissions cars for your company. Here’s how:

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If you’re planning to make the most of your company’s fleet of vehicles, consider the 31st March a red letter day*. Until that date, businesses purchasing new cars with emissions of 95g/km or less are eligible for 100% tax relief, allowing the whole purchase price to be deducted from the company’s taxable income.

From April, however, the threshold changes, meaning that emissions can’t exceed 75g/km if you’re to qualify for the full writing down allowance. True, cars that don’t qualify are still eligible for an annual deduction** of either 8% or 18%, depending on emissions, but this is still a big deal. Buy a Peugeot 308 1.6 BlueHDi Allure with emissions of 84g/km, and a company paying tax at a rate of 20% may claim tax relief for the year of purchase of £4,189 if they buy in March. Buy in April, however, and you’re looking at tax relief of just £754 in the first year.

Peugeot is the European leader in low CO2 vehicles, and at the moment the 95g/km threshold allows your business to buy from a wide selection of exceptional cars, including the 108, 208, 308, 3008 and iOn. Peugeot also leads on innovation, with new engines and platforms that are designed with efficiency, low consumption and low CO2 emissions in mind

Take Peugeot’s latest three-cylinder PureTech petrol engines, for example. These engines are compliant with the new Euro 6 standard, which sets tough new limits on pollutant emissions for new road vehicles.  Featuring an aluminium cast iron lined block, direct fuel-injection to all three cylinders, low-friction materials and efficient cooling systems, PureTech Engines produce the kind of performance you’d expect from a larger engine, but with the efficiency of a small one. A 1.2 litre PureTech engine has all the power of a 1.6 litre engine, yet its emissions go as low as 95g/km. Fuel consumption also drops by 25% compared with 4-cylinder engines of equivalent power.

You can find PureTech engines powering the Peugeot 208, 2008 and the award-winning Peugeot 308 – European Car of the Year 2014. 140kg lighter than the previous 308, it’s the perfect balance of performance and efficiency, delivering optimal performance without sacrificing strength or space.

Look inside the Peugeot 308 1.6 BlueHDi, and you’ll find Peugeot’s revolutionary BlueHDi diesel engine. A genuine leap forward, the BlueHDi engine features a Selective Catalytic Reduction system, which converts Nitrous Oxide into steam and nitrogen. Combined with an advanced Diesel Particular Filter, it reduces Nitrous Oxide emissions by 90%, diminishes CO2 emissions and eliminates 99.9% of fine particles. As a result, BlueHDi engines can reach impressively low emissions levels without compromising performance, so that the 308 Active 1.6 BlueHDi puts out 120HP yet just 82g/km of CO2 and 91.1 mpg

That means big savings on fuel and on road tax in a car that’s still great to drive, with the lighter chassis and a lower centre of gravity improving handling and performance. To find out more about Peugeot innovation, click here.

Meanwhile the Peugeot i-Cockpit, designed to cut down on “button overload” by moving functions to a huge 9.7-inch touchscreen, keeps the focus off the dashboard and takes the strain out of driving. Instead of being confused by controls and dazzled by extraneous lights and indicators, the driver is naturally drawn to the clear displays and to the road ahead. Built for clarity, precision and cutting-edge connectivity, the Peugeot i-Cockpit delivers everything you need for a fleet car.

All in all, this five-door hatchback is a great choice for hard-working fleets. As motoring journalist Jonny Smith puts it, “you can see the car looks great, I can tell you that it drives well, and Peugeot has the stats to prove it’s efficient too.” To see the 308 in action and find out more, click here.

By moving fast, you can purchase a brand-new 308 – or any one of Peugeot’s low CO2 vehicles - in the most efficient way, helping maximise your company’s tax relief. The key thing is to start the ball rolling early to avoid being thwarted by lead times.

That’s why you should act now. Talk to your dealer, run through your plans for the company fleet, and ensure that your new purchase qualifies for the most advantageous tax relief possible. You’ll end up with cars your whole company will love, and with the coffers a few thousand pounds per vehicle better off.

To find out more about the Peugeot 308, please follow this link to our website.

* For sole traders or partnerships the red letter day is 5th April 2015.

** Annual writing down allowances are calculated on a reducing balance basis; starting with the purchase cost the car’s tax written down value is progressively reduced each year by the annual capital allowance.

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