Measures affecting Capital Allowances proposed during the Autumn 2024 Budget include an extension of First Year Allowances (FYAs) for zero-emission cars and electric vehicle charging points to 2026 and a change to the treatment of double cab pick-ups from 2025. 

Budget 24 capital allowances

The Chancellor, Rachel Reeves, announced the following measures:

  • 100% First Year Allowances (FYAs) on zero-emission cars and electric vehicle charging points will continue until April 2026.
  • From April 2025, double cab pick-ups with a payload of one tonne or more will be treated as cars for capital allowance purposes.

Zero-emission cars and electric vehicle charging points

From 1/6 April 2025:

  • The availability of 100% First Year Allowances (FYAs) on zero-emission cars and electric vehicle charging points will be extended until: 
    • 31 March 2026 for Corporation Tax purposes.
    • 5 April 2026 for Income Tax purposes.

Double cab pick-ups

From 1/6 April 2025:

  • Double cab pick-up vehicles with a payload of one tonne or more will be treated as cars for capital allowances.
  • The existing capital allowances treatment will apply to vehicles purchased before April 2025.
  • Transitional arrangements will apply when an amount of expenditure is incurred on a double cab pick-up as a result of a contract entered into before April 2025 and the expenditure is incurred on or after that date but before 1 October 2025. 

Tax treatment of predevelopment costs

  • A consultation will be launched in the coming months that explores the tax treatment of predevelopment costs.

Extending full expensing to assets bought for leasing

  • The government will explore extending full expensing to assets bought for leasing or hiring when fiscal conditions allow.

Clarity on what qualifies for capital allowances 

  • HMRC will continue to work with stakeholders to improve and clarify guidance on areas of uncertainty within the capital allowances system.

Back to Autumn Budget 2024

Useful guides on this topic

Autumn Budget 2024: At a glance
Our At a glance view to the Autumn Budget 2024

Our Autumn Budget 2024: Live Speech highlights
Our live feed summary of the highlights of the Chancellor's Autumn Budget speech.

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