Extension of First-Year Allowances for Zero-Emission Cars and Electric Vehicle Charging Points

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.At A&C Chartered Accountants, we're not just accountants; we're your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

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