½Û×ÓÊÓÆµ

Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.3 Plant and machinery /Expenditure qualifying for first-year allowances / B3.324F Expenditure on zero-emission goods vehicles—first-year qualifying expenditure
Commentary

B3.324F Expenditure on zero-emission goods vehicles—first-year qualifying expenditure

Business tax

100% first-year allowances are available for expenditure incurred before 6 April 2025 (income tax) and 1 April 2025 (corporation tax) on zero-emission goods vehicles1. The period specified can be extended by Treasury Order2.

For HMRC guidance see CA23145–CA23149.

A goods vehicle is a mechanically propelled road vehicle which is of a design primarily suited for the conveyance of goods or burden of any description, and it is a zero-emission goods vehicle if it cannot in any circumstances emit CO2 by being driven3. The vehicle must be registered, be unused and not second-hand4. HMRC considers that a vehicle is unused and not second-hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driving by a potential purchaser or use as a demonstration vehicle5. It does not matter whether the vehicle is first registered before or after the expenditure is incurred6.

HMRC considers that the vehicle must be registered for use on the road7.

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial

Web page updated on 17 Mar 2025 17:22