B3.324F Expenditure on zero-emission goods vehicles—first-year qualifying expenditure
For the latest New Development, see ND.1862.
100% first-year allowances are available for expenditure incurred before 6 April 2025 (income tax) and 1 April 2025 (corporation tax) on zero-emission goods vehicles1. The period specified can be extended by Treasury Order2.
For HMRC guidance see CA23145–CA23149.
A goods vehicle is a mechanically propelled road vehicle which is of a design primarily suited for the conveyance of goods or burden of any description, and it is a zero-emission goods vehicle if it cannot in any circumstances emit CO2 by being driven3. The vehicle must be registered, be unused and not second-hand4. HMRC considers that a vehicle is unused and not second-hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driving by a potential purchaser or use as a demonstration vehicle5. It does not matter whether the vehicle is first registered before or after the expenditure is incurred6.
HMRC considers that the vehicle must be registered for use on the road7. Vehicles propelled by an electric motor powered by an onboard electric storage battery or hydrogen fuel cell will qualify. Where a vehicle is fuelled by hydrogen as a substitute for a carbon based fossil fuel a claim for capital allowances will only be allowed if the vehicle cannot also be directly powered by a carbon emitting fuel on the road8.
The Treasury may by order amend CAA 2001, Pt 2, Ch 4 (ss 39–51) to provide for