June Budget – Zero emission vehicles
A new Budget Note has been published confirming a measure announced earlier this year. This relates to the introduction of 100% first year allowances for business expenditure on new and unused (not second hand) zero-emission goods vehicles.
The Government have confirmed that from 1 April 2010 to 1 April 2015 (for businesses subject Corporation Tax) and from 6 April 2010 to 5 April 2015 (for businesses subject to Income Tax) there will be a 100% first year allowances on the purchase of goods vehicles which cannot produce more than 0g/km CO2 engine emissions under any circumstances when driven.
These benefits are expected to significantly increase the market for electric vehicles in the UK.
The Government is expected to put in place the necessary legislation in the Finance Bill to be introduced following the summer recess.