Budget 2010 – First year allowances goods vehicles
The Chancellor has introduced a 100% first-year allowance (FYA) for business expenditure on new and unused (not second hand) zero-emission goods vehicles. The measure will take effect for expenditure incurred on qualifying vehicles from 1 April 2010 for corporation tax and from 6 April 2010 for income tax. The measure will be effective for five years.
The following conditions must be met to qualify for the 100% FYA:
- the vehicle cannot under any circumstances produce CO2 emissions when driven;
- the vehicle is of a design primarily suited to the conveyance of goods or burden;
- the expenditure must be incurred on or after 1 April 2010 (CT) or 6 April 2010 (income tax) and before 1 April 2015 (CT) or 6 April 2015 (income tax).
This FYA is subject to the general exclusions in section 46 of the Capital Allowances Act 2001 including businesses that lease these type of vehicles.