First-year allowances on zero-emission goods vehicles
A 100% first-year allowance (FYA) will be provided for business expenditure on new and unused zero-emission goods vehicles. This extends the previous announcement in Pre-Budget Report 2009 to provide a 100% FYA for electric vans only.
Some general exclusions on FYAs already exist and will still stand; for example, vehicles bought for the purpose of leasing will not benefit.
The amount of expenditure that will qualify for the new FYA is to be limited to €85 million per group over the five year period.
Who will be affected?
All business investing in new zero-emission goods vehicles.
This measure will have effect for a period of five years for expenditure incurred on new zero-emission goods vehicles on or after 1 April 2010 (for corporation tax) or 6 April 2010 (for income tax).
This will be of benefit to businesses with significant planned expenditure on new zero emission goods vehicles, particularly in view of the alternative main pool rate of writing down allowances reducing from April 2012.