CA23535 - Plant and Machinery Allowances (PMA): cars: outline of rules

CAA01/104A & 104AA

The capital allowances treatment of expenditure on a car depends on the carbon dioxide emissions of the car. In summary,

• As described in CA23153, 100% FYAs can be claimed for cars which are unused and not second hand and which have zero CO2 emissions.
• Main rate WDAs can be claimed for cars (including second hand cars) with low or middle range CO2 emissions.
• Special rate WDAs can be claimed for cars with higher CO2 emissions.

The CO2 thresholds depend on the date of purchase. Details can be found on 'Claim capital allowances - Business Cars', gov.uk. For information about emissions figures, see CA23545.

If there is an element of non-business use of the car then the expenditure will still need to be allocated to a single asset pool in accordance with CA27005 but the rate at which WDA are given will depend on the car’s CO2 emissions.