Measure
The government has announced that the 100% first-year capital allowance for qualifying plant and machinery expenditure will be available on EV charging points and zero emission cars for a further 12 months, to 31 March 2026.
Companies within the charge to corporation tax which incur capital expenditure on the provision of EV charging points and zero emission cars, subject to certain exclusions which apply to first year allowances.
The measure will apply to expenditure incurred in relation to the provision of EV charging points and zero emission cars up to 31 March 2026.
The scheme was due to expire on 31 March 2025 and this measure will extend the availability of first year allowances until 31 March 2026.
The extension to the scheme recognises the importance of supporting the transition to electric vehicles and continue the road to net zero. In the absence of this extension, the relief on offer for zero emission cars and electric vehicle charging points would, for certain taxpayers, potentially revert to writing down allowances of 18%. Therefore, this extension provides a significant incentive to invest in these assets.