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.
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.
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.