THE British Vehicle Rental and Leasing Association has called on the Government to abolish the £12,000 'expensive' car limit on capital allowances for lease and contract hire cars. In its budget submission to the Chancellor, the BVRLA proposes the replacement of the £12,000 limit with a reduction in the writing down allowance to 22.5% from 25%.

This has been at the heart of BVRLA campaigns for years. It believes the £12,000 limit in respect of both the writing down allowance and the lessee's rental write-off restriction are discriminatory against its members. Fleets which outright purchase their cars suffer a deferment until disposal, of relief on capital allowances for cars costing more than £12,000. For leasing companies, however, the deferment is absolute.

Failing abolition, the BVRLA has called for the limit to be raised to £16,000 from £12,000. This figure was last raised in 1992, and the £12,000 limit is estimated to fall below the retail price of 70% of new cars.