Capital allowances on Low Co2 Cars…

With effect from April 2009 the capital allowance treatment of all cars will be reformed to favour those with low CO2 emissions.

Expenditure on cars with CO2 emissions above 160g/km will attract 10% writing down allowance (WDA) while expenditure on cars with CO2 emissions of 160g/km or below will attract 20% WDA.

The rules which disallow a proportion of car lease rental payments will be reformed in line with the new capital allowances rules. The new disallowance will be 15% of the relevant payments, applied to cars dealt with the 10% special rate pool.

In addition to this, the 100% first year allowance (FYA) for the cleanest cars will be extended from March 31, 2008, to March 31, 2013, and the qualifying CO2 emissions threshold will be reduced to 110g/km.

Use this business link online tool to see if you can benefit

Tips on buying your fuel efficient car

Motorists who hope to reduce their CO2 emissions have no need to compromise when buying a new car. Simply choose a more fuel efficient version of a car that fits your needs and you’ll be well on your way to reducing your carbon footprint. The more fuel efficient the car, the less fuel it burns, so the less CO2 it produces. If everyone buying a brand new car chose the most fuel efficient car in its class, CO2 emissions from new cars could be reduced by up to 24 per cent and save up to three months worth of fuel per year.

1. Consider the car you want
2. The engine matters
3. Petrol or diesel?
4. Look for the label
5. Ask about fuel efficiency
6. Be a smarter driver

Six useful tips when buying a car:

1. Consider the car you want

In very general terms, smaller cars tend to be more fuel efficient and emit less CO2, so ask yourself questions about what you want the car for. Do you really need six seats for a family of four? Could you make do with a smaller boot if you only use the car for shopping?

2. The engine matters

Once you’ve decided on the type of car, check out the different makes, models and engine options. Most models offer a range of engines that vary in fuel efficiency and CO2 emissions.

3. Petrol or diesel?

Petrol and diesel engines have different effects on the environment. Engines powered by diesel generally produce less CO2 but more air pollutants than their petrol counterparts. But which one should you choose? As a rule of thumb, if most of the driving you do is long distance or motorway driving, then consider a diesel engine for fuel efficiency and lower CO2 emissions. On the other hand, if you spend more time in town, where air quality is a greater consideration, then a petrol engine may be better suited.

4. Look for the label

Most new cars in a car showroom have a colour-coded fuel efficiency rating like fridges and washing machines (like the one shown, right). The coding is from band A to band G, with bands A and B representing cars that emit the least CO2, as well as having lower car tax. The lower the emission band, the lower the tax you’ll pay. The label is also a guide to the running costs you can expect for that car over 12,000 miles, so you can compare how much different cars cost to run.

5. Ask about fuel efficiency

Ask your car sales staff about the efficiency and environmental performance of your chosen car and the helpful extras available. For example, ‘particulates’ are emissions released when fuel is burned that are harmful to local air quality. But on some cars an optional extra called a DPF (diesel particulate filter) can be fitted to reduce these emissions from diesel engines. As petrol cars produce fewer particulates, filters are not generally needed for petrol engines.

6. Be a smarter driver

There are smarter ways to drive your car that help to improve fuel efficiency and reduce CO2 emissions. The smarter driving tips offer useful suggestions you can put into practice to help you cut down.

For further information phone Stephanie Pettitt on 01305 769739 or visit

http://www.whatgreencar.com/