Can the monthly payments be offset in full against Corporation Tax?
Yes. 100% of the monthly rentals may be offset against Corporation Tax. For vehicles costing over 12,000 a proportion is disallowed. To find exactly how much is allowable a simple calculation must be followed. This calculation is commonly known as the “Half the difference rule”. 12,000 + 1/2 (Cost-12,000) x 100% Cost Example 1 If a vehicle costs 15,000, this is how the calculation works.
