Schedule 11
Finance Bill
10:30 am
Kitty Ussher (Parliamentary Under-Secretary, Department for Work and Pensions; Burnley, Labour)
The answer is quite simple. We have 100 per cent. capital allowance for cars with emissions at or below 110 g/km; then, we propose a 20 per cent. allowance for cars with emissions up to 160 g/km and a 10 per cent. allowance for cars with emissions in excess of that. The legal definition is extremely clear. The purpose of our legislation is to encourage companies to purchase cars that are progressively more environmentally friendly. If they want to go straight away for cars emitting 110 g/km or less, that is fantastic and they will reap a reward for doing so. We are trying to shift the bell curve all the way down to encourage the use of lower emitting vehicles.