Zero-emission goods vehicles
The measure
As announced at the 2009 Pre-Budget Report, this measure will provide a 100%
first-year allowance for expenditure incurred on new and unused (ie not
second-hand) zero-emission goods vehicles. Eligible vehicles must be unable to
produce CO2 emissions under any circumstances and must be designed for the
conveyance of goods or burden.
The general exclusions applicable to all first-year allowances will apply here
(including an exclusion for leased assets), in addition to further restrictions
imposed by State aid rules (including an overall expenditure cap of €85m over
the five year life of the measure).
Who will be affected?
Businesses purchasing zero-emission goods vehicles.
When?
This measure will have effect for expenditure incurred for a period of five years starting on 1 April 2010 for corporation tax purposes and 6 April 2010 for income tax purposes.
This extension of the existing incentive offered on expenditure incurred on cars with low CO2 emissions will surely be welcomed by businesses investing in energy efficient and low carbon vehicles, albeit that this relief is only available to zero-emission (ie electric motor-based) vehicles.
