Business cars will be subject to emission-based capital allowances following the Budget last month. Cars will be placed in one of two capital allowance pools, according to their CO2 emissions, with vehicles releasing more than 160g of carbon dioxide per km attracting a 10% writing down allowance, while those which release less will receive a 20% allocation.
Company car tax will be increased on all but the cleanest of cars, which emit less than 135g of CO2 per kilometre in 2010.
The Budget also contained measures to limit Enterprise Management Incentive (EMI) schemes to firms with less than 250 staff. The individual option grant limit for these schemes will increase from £100,000 to £120,000.
In addition, there were measures to ease the rules on trivial commutation so that pensions savings below £2,000 can be converted into cash.