16 March 2021
Capital Allowance could be saving your fleet £1000’s
Your fleet could be making significant savings on its cars by taking advantage of the capital allowance changes coming this spring.
Coming into force in April, the changes include 100% first year allowance for zero emission vehicles and those savings will continue until the 2024/25 tax year.
The allowance for businesses is dependent on the emissions and the age of the vehicle. If the vehicle was bought between April 2015 – April 2018 to achieve the first year allowance a car’s CO2 emissions needs to be 75g/km or less.
For cars bought after April 2018, the CO2 emissions need to be 50g/km or less or they will be on the main rate allowance of 18%.
A huge benefit of these allowances includes the ability to deduct the full cost of your electric vehicles from your pre-tax profits.
Following the government’s Road to Zero plan, it is a crucial time for fleet decision-makers who need to determine whether it is more cost-effective to buy or lease zero-emission vehicles.