t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

Buying an electric or low emission car

Source: HM Revenue & Customs | | 24/10/2017

Businesses can claim a 100% first-year allowance (FYA) on the purchase of certain qualifying Plant and Machinery (P&M). In certain circumstances they can also claim FYA’s on the purchase of low CO2 and electric vehicles. The generous Annual Investment Allowance (AIA) does not apply to cars.

There are FYAs available for purchasing a new electric car, or a new, unused car within the threshold for low CO2 emissions (currently 75 gms/km or less). From April 2018, the emission threshold below which cars are eligible for the FYA will be reduced from 75 gms/km to 50 gms/km.

These FYAs are available through the enhanced capital allowances (ECA) scheme for certain energy-saving technologies. The benefits of purchasing a low emission or electric car can therefore be substantial and are aimed at encouraging businesses to reduce their carbon footprint whilst at the same time accelerating tax deductions.

Planning note

There is also a new FYA for electric vehicle charging points. Taken together, these measures are likely to see many businesses moving forward with plans to purchase electric vehicles and install electric vehicle recharging equipment over the next few years. Please call if you would like to consider this option so that any tax opportunities can be maximised.



 

Latest News

  • Appealing to a tax tribunal

    13/02/2018 - More...

    There are a number of different options open to taxpayers that disagree with a tax decision issued by HMRC. The first step is to make an appeal to HMRC against the tax decision. If

  • Does a charity pay tax?

    13/02/2018 - More...

    The tax treatment of charities can be very complex. As a first step any charity hoping to benefit from any beneficial treatment needs to be recognised as a charity for UK tax

  • Pay and paternity leave

    13/02/2018 - More...

    When your partner gives birth or when you adopt a child or have a baby by surrogate, you may be entitled to 1 or 2 weeks paternity leave and paternity pay. You are also entitled to

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login


Copyright © 2018 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy