Whilst we’re not clear what the next budget has in store, I’m pretty sure that tax incentives in some shape or form will be around for some time to come for green vehicles. With electric (not hybrid) cars becoming more and more advanced and new models due in the new year, the following allowances might be useful:
- The 2019/20 taxable benefit for a zero emissions car is 16%
- From April 2020 cars with an emissions rating of 0 will reduce to 0% (draft legislation)
Charging points also qualify for Capital Allowances.
The planning point here is that your business can buy outright an electric car by April 2021, claim 100% first year allowance and the driver does not have a taxable benefit from April 2020. Let’s see what the budget brings but it’s definitely worth considering going green!