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.
This example 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.
| 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 | |||
*Assumes copropation tax and WDA rates remain unchanged.
Please note This information is not intended as advice, and no guarantee is provided for its accuracy or comprehensiveness.
Lease Electric recommends seeking professional advice and guidance before making any decisions.
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