Contract Hire / Corp Tax

[griffgrog]

I've always understook that from a corporation tax point of view, leased / Contract hired cars are 100% off set against corporation tax.

My mate is telling me that this is not the case for cars with a list price of £12K or more.

Is he right?

[Eric Mc]

Where did my previous reply go?

Your mate is right. Contract hire leasing costs are restricted by means of a formula which as based on the "expensive car" limits.

[wattsm666]

Yes he is, there is a restriction above £12k, which is classifed as an 'expensive' car!

[griffgrog]

So what's it going to cost? We've added about 15 BMW 320 - 520's this year alone!

[Eric Mc]

Ask your accountant to work it out for you.