General rule

The general rule (CAA 2001, s. 46(2)) is that no first-year allowances (FYAs) are available for cars; however, an exception is made for a car that is ‘electrically propelled’ or that has ‘low CO2 emissions’. Both of these are technical terms with their specific definitions, discussed below.

To qualify for these first-year allowances, such a car must be bought by 31 March 2025 (most recently extended from 31 March 2021 by the Capital Allowances Act 2001 (Cars Emissions) (Extension of First-year allowances) Order 2021 (SI 2021/120)) and must be ‘unused and not second-hand’ (CAA 2001, s. 45D).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.