Cash Flow Benefits

Under current HMRC rules, a business buying a Fiat with CO₂ emissions under 110g/km can make big cashflow savings. That’s because you can offset 100% of the vehicle cost against profits in the same year you purchase it, meaning you pay significantly less tax in the year of acquisition.

Purchase vs contract hire

The savings apply to cars that you purchase, because you can claim a capital allowance for it in the year you buy it. If you prefer to spread the cost to help your cashflow, we offer a range of purchase plans such as Fiat i-Deal or Hire Purchase. You can’t enjoy the same benefit under traditional contract hire, as you are not the owner and so the car is not an asset on your balance sheet.

Small emissions, big benefits

The capital allowance you’re entitled to now depends on the CO₂ emissions of your car, rather than its cost. Cars with CO₂ emissions lower than 110g/km can enjoy the full 100% capital allowance, i.e. the whole cost can be written off in the first year, as opposed to 20% per year, as happens with cars with emissions higher than 110g/km. This brings down the amount that is subject to corporation tax, significantly reducing your liability.

Fiat Models with tax opportunity 

All Fiat models with these engines qualify for the 100% full year allowance. Visit your local Fiat dealer to take a closer look and find out about our competitive finance plans.