The autumn budget included an extension to the current enhanced capital allowances (CA) for the cost of new or unused zero or low emission cars. The enhanced CA were originally brought in as part of the last Governments green initiative to encourage business owners to invest in low emission cars and charging points, allowing 100% of the costs to be claimed as CA in the year the costs are incurred.

These enhanced CA were due to end, however they have been extended until:

  • 31 March 2026 for corporation tax
  • 5 April 2026 for income tax for unincorporated businesses (i.e. sole trade).

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