Extension of First-Year Allowances for Zero-Emission Cars and Electric Vehicle Charging Points
The UK government has announced the extension of first-year allowances (FYAs) for businesses investing in zero-emission cars and electric vehicle (EV) charging points. These allowances enable businesses to deduct 100% of the cost of qualifying investments from their taxable profits in the year of purchase.
Key Points:
- Zero-Emission Cars
Businesses can continue claiming the 100% FYA on zero-emission cars purchased for business use. To qualify, the vehicle must meet specific CO₂ emissions criteria and be brand new. - EV Charging Points
The allowance also applies to investments in EV charging points, encouraging businesses to support the shift to electric vehicles by installing infrastructure. - Timeframe
The extension applies to qualifying expenditures made until 31 March 2025 for companies and 5 April 2025 for individuals or unincorporated businesses. - Business Benefits
This incentive supports environmentally friendly investments, reduces tax bills, and aligns with the government’s net-zero goals.
For more details on eligibility and how to claim, visit the UK Government website.
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