Zero emissions vehicles

The government have pledged a number of initiatives to increase the number of electric vehicles (EVs) in use and made it easier for businesses to go green.

• First Year Allowances for new EVs – businesses can reclaim 100% First Year Allowances on the purchase of a zero emissions vehicle up to April 2025, which could help your business fund additional costs of an EV over an ICE car with accelerated allowances.
• Vehicle Excise Duty changes – Expensive Car Supplement scrapped for EVs costing more than £40,000 up to 2025, potentially helping Total Cost of Ownership calculations when considering the viability of new EVs over existing ICE vehicles.
• Benefit In Kind tax - reduced from 16% to 0% in the 20/21 tax year, 1% in 2021/22 and 2% in 2022/23 for zero emissions cars, meaning significant savings and further incentives for your employees when compared with more traditionally fuelled alternatives.
• £1.9bn investment into Green Transport solutions – this includes a review of the EV Charging Infrastructure to ensure spending is appropriately targeted.
• Plug in vehicle grant - commitment to provide £582m to extend the support for the purchase of new qualifying vehicles up to 2022/23.
• For capital expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments, including EV charging points.

Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances.