Audi is reassuring company car drivers that tax changes announced in the recent Budget will not affect the cost of running its core fleet models.
Chancellor of the Exchequer George Osborne announced in his Budget that fewer cars would be eligible for a special tax off-set as he was tightening the qualifying criteria. The changes to the capital allowances regime – the amount a business which buys its cars outright can offset against corporation tax – will see the highest rate of 18% cut from 160g/km of CO2 to 130g/km.
He also announced that for cars to qualify for the 100% first year writing down allowance they must emit 95g/km of CO2 or less, reducing to 75g/km or less from April 2015.
The moves mean that cars which have emissions above 130g/km will be less popular as there are fewer advantageous tax reasons for a company to buy one.
Audi is claiming that it has more than 150 models (taking into account engine, gearbox and trim level combinations) which fall below the key 130g/km limit, helped by the company’s fuel saving technology such as engine start/stop systems, energy recuperation from braking and free-wheeling, the new cylinder deactivation technology which has recently been introduced on A3 models, plus ultra-efficient direct injection engine technology.
While the manufacturer has no cars which currently qualify for the 100% writing down allowance, it has a variety in the 18% capital allowance banding, with 16 engine and gearbox combinations in the A1 range qualifying. The 1.6 TDI diesel and 1.4 TFSI petrol both qualify, emitting 99g/km and 126g/km respectively.
In the larger A3 range, a total of 18 three-door and Sportback models comply with the new tax regime, from the 99g/km 1.6 TDI through to the 1.8 TFSI S tronic at 130g/km. The number of A3 derivatives that qualify will grow when Audi launches the A3 saloon range this summer.
In the core fleet A4 model range, Audi offers 10 models under 130g/km, while there are 11 versions of the A5 line up which qualify, including the 3.0-litre V6 diesel Sportback at 129g/km.
Finally, the A6 executive range is also included with the 177ps 2.0 TDI saloon also squeezing in at 129g/km.
