Policy paper

Capital allowance carbon dioxide emissions thresholds for business cars, goods vehicles and equipment for gas refuelling stations from April 2021

This Tax Information and Impact Note is about an extension to the period that 100% first year capital allowances are available for business cars and first year allowances for business cars, zero-emission goods vehicles and equipment for gas refuelling stations.

• From: HM Revenue & Customs
• Published: 11 March 2020

Documents

Capital Allowances: CO2 emission thresholds for business cars and first year allowances for business cars, zero-emission goods vehicles and equipment for gas refuelling stations

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Details

This measure extends the period when the 100% first year (capital) allowances are available for this expenditure from April 2021 to April 2025.

The measure also reduces the carbon dioxide (CO2) emission thresholds which are used to determine the rate of capital allowances available for business cars. This will also reduce the threshold for the lease rental restriction. These changes will also come into effect from April 2021.

Published 11 March 2020