Example for a Tesla Model 3 RWD with an effective monthly rental of £721.80
| Year | Yr 1 (FY22) | Yr 2 (FY23) | Yr 3 (FY24) | Cumulative Tax Relief |
|---|---|---|---|---|
| Lease Rentals for tax relief | £8,662 | £8,662 | £8,662 | |
| Corporation tax rate | 25% | 25% | 25% | |
| Tax relief | £2,165 | £2,165 | £2,165 | £6,496 |
If the timing of the lease rentals is not spread evenly (for instance, there is a large upfront payment) then the tax relief will be spread evenly throughout the lease period rather than over the period when the cost of the lease rentals is incurred.
Example for a car with an effective monthly rental of £720
| Year | Yr 1 (FY22) | Yr 2 (FY23) | Yr 3 (FY24) | Cumulative Tax Relief |
|---|---|---|---|---|
| Lease Rentals for tax relief | £8640 | £8640 | £8480 | |
| Corporation tax rate | 25% | 25% | 25% | |
| Tax relief for Lease Rentals | £2160 | £2160 | £2160 | £6482 |
| Less Leasing Disallowance (15%) | (324) | (324) | (324) | (972) |
| Tax Relief Recieved | £1836 | £1836 | £1836 | £5508 |
