Low emissions Fiats to benefit from Capital Allowance rule changes

Fiat is anticipating increased interest from fleet managers in its low-emissions vehicle range, following the introduction today of new Capital Allowance guidelines.

The 1 April changes will see attention focus more keenly on whether a vehicle’s CO2 emissions are above or below the new 160 g/km threshold. Fiat has 70 models – 83 per cent of its UK range – with emissions of 160 g/km or less, all of which will benefit from a 20 per cent Capital Allowance, compared with only 10 per cent for 161 g/km models.

With companies able to recoup a larger amount of a sub-160 g/km vehicle’s taxable value, the changes are set to encourage greener vehicles to be added to fleets. The new rules will benefit both companies, with lower whole life costs, and drivers, who will be rewarded with reduced Benefit in Kind (BIK) tax bills as they take lower emissions vehicles.

Sub-160 g/km models from Fiat include the practical Panda and stylish 500 city car, plus the widely acclaimed Grande Punto, Bravo, Doblo, Qubo and Sedici.

In addition, 1.3 MJet diesel-engined versions of Fiat’s 500 city car enjoy a 100 per cent capital allowance for the first year due to its low CO2 emissions of just 110 g/km.

“Fiat is recognised as having the lowest average CO2 emissions scores of any manufacturer in Europe across its range of vehicles,” says Adam Pumfrey, Fleet and Remarketing Director, Fiat Group Automobiles UK.

“The new capital allowance rules will make our vehicles even more appealing in the fleet sector, particularly in the current economic climate, as cost-conscious companies look to drive down their fleet bills.”