Electric vans: 100% first-year allowances
The measure
Subject to State Aid approval, legislation is to be introduced to provide a 100% first-year capital allowance for expenditure incurred on new (ie not second hand) electric vans.
Who will be affected?
Any businesses that purchase new electric vans.
When?
This measure will have effect for expenditure incurred on or after 1 April 2010 for corporation tax purposes and 6 April 2010 for income tax purposes.
Our view
This extension of the existing incentive offered on expenditure incurred on electric and low CO2 emission cars will surely be welcomed by businesses investing in energy efficient and low carbon vehicles.
