Cars qualifying for 100% First Year Capital Allowances

Yes, there is an increased rate of 100% First Year Allowances (FYA) available on electric cars or new cars with C02 emissions of not more than 110g/km. The increased rate is available from 1st April 2008 until April 2013 for the next 5 years.

New cars are "unused and not second hand." A car is unused and not second hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driven by a potential purchaser or used as a demonstration car.

Previously, 100% FYA’s were available on cars with CO2 emmissions of 120g/km or less and the conditions to qualify for this rate are that the car must be "unused and not second hand" , is first registered on or after 17 April 2002 and the expenditure is incurred between 17 April 2002 and 31 March 2008.

Your TaxAssist Accountant will be able to provide you with further information on the make and model of vehicles that qualify for this allowance.

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.