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To access this screen select Edit, Leased expensive cars
Where a business has multiple trades, each individual leased expensive car must be allocated to a specific trade. Select the trade by selecting the Trade name drop-down option.
For leases commencing on or after 1 April 2013 for corporation tax, cars with CO2 emissions of over 130g/km or more face a 15% lease rental restriction , meaning that they can only deduct 85% of any rental payments against their taxable profits.
For leases commencing on or after 1 April 2009 for corporation tax, cars with CO2 emissions of over 160g/km or more face a 15% lease rental restriction, meaning that they can only deduct 85% of any rental payments against their taxable profits.
In addition, where there is a chain of leases, this disallowance will only apply only to rental payments made by one lessee in a chain of leases.
Expenditure under leases that commenced prior 1 April (that is where the car is made available before April 2009) will continue to be subject to the “old” rules.
RENTAL – (( 12,000 + ½ (RETAIL PRICE – 12,000 )) x RENTAL )
RETAIL PRICE
Because leases can be from a previous period or be set up for the future, there is a tick box to show the data from the current period only.
Selecting the Leased expensive car option allows you to enter the:
Description
Start of lease (optional)
End of lease (optional)
Retail price
Total rental payments in this period
Cars purchased on and after 1/6 April 2009 have additional fields to be filled out
Make/Model
Fuel type
Carbon dioxide (CO2) emissions
Individual add back (for this CTAP)
The description, start and end dates, and retail price are retained from period to period. The user must enter the period rental each year.
Click here to view the rules on CO2 emissions