These examples are cacluated based on a company purchasing a car for £45,000 outright, keeping it for 48 months, after which it sells the car for £22,500.
Assumes copropation tax and WDA rates remain unchanged.
| Year | Yr 1 (FY22) | Yr 2 (FY23) | Yr 3 (FY24) | Yr 4 (FY25) Disposal |
|---|---|---|---|---|
| Purchase Price | £45,000 | |||
| Sales Proceeds | -£22,500 | |||
| Tax Writedown Vales | £45,000 | £0 | £0 | -£22,500 |
| WDA Rate | 100% | 0% | 0% | 18% |
| Capital Allowances | £45,000 | £0 | £0 | -£4,050 |
| Corporation tax rate | 25% | 25% | 25% | 25% |
| Tax relief | £11,250 | £0 | £0 | -£1013 |
| Cumulative tax relief accrued after 10 years* |
£6775 | |||
| Year | Yr 1 (FY22) | Yr 2 (FY23) | Yr 3 (FY24) | Yr 4 (FY25) Disposal |
|---|---|---|---|---|
| Purchase Price | £45,000 | |||
| Sales Proceeds | -£22,500 | |||
| Tax Writedown Vales | £45,000 | £36,900 | £30,258 | £2312 |
| WDA Rate | 18% | 18% | 18% | 18% |
| Capital Allowances | £8100 | £6642 | £5446 | £416 |
| Corporation tax rate | 25% | 25% | 25% | 25% |
| Tax relief | £2,025 | £1661 | £1362 |
£104 |
| Cumulative tax relief | £2025 | £3686 | £5047 |
£5151 |
| Cumulative tax relief accrued after 10 years* |
£5507 | |||
| Year | Yr 1 (FY22) | Yr 2 (FY23) | Yr 3 (FY24) | Yr 4 (FY25) Disposal |
|---|---|---|---|---|
| Purchase Price | £45,000 | |||
| Sales Proceeds | -£22,500 | |||
| Tax Writedown Vales | £45,000 | £42,300 | £39,762 | £14,876 |
| WDA Rate | 6% | 6% | 6% | 6% |
| Capital Allowances | £2700 | £2538 | £2386 | £893 |
| Corporation tax rate | 25% | 25% | 25% | 25% |
| Tax relief | £675 | £635 | £596 |
£223 |
| Cumulative tax relief | £675 | £1310 | £1906 |
£2129 |
| Cumulative tax relief accrued after 10 years* |
£4754 | |||
*Assumes copropation tax and WDA rates remain unchanged.
Include cars used by sole traders or partnerships with private use in a single asset pool.
Until April 2025, a business that purchases a van with zero CO₂ emissions is eligible for a 100% First-Year Allowance (FYA) provided the business does not claim the government’s Plug-In Van Grant (PIVG).
Any other van should be treated as plant and machinery and allocated to the main pool, where it will be eligible for writing down allowances at 18%, unless an Annual Investment Allowance is claimed.
Other allowances: Electric Charge Points 100% this will expire on 31 March 2025
