Owner-Managed Businesses

First year allowances

Produced by Tolley
  • 22 Dec 2021 21:31

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • First year allowances
  • Low emission cars
  • Zero-emission goods vehicles
  • Electric vehicle charging points
  • Gas refuelling stations
  • New assets in designated assisted areas (within enterprise zones)
  • New assets in tax sites in a freeport
  • First year tax credits (FYTC)
  • Repayable credits

First year allowances

First year allowances (FYAs) are available on the following items:

  1. new and unused cars with low CO2 emissions, or car is electric

  2. new and unused zero-emission goods vehicles

  3. new electric vehicle charging points

  4. gas refuelling stations

  5. expenditure on new plant or machinery which qualifies as a special rate asset and is incurred on or after 1 April 2021 and before 1 April 2023 (companies only), see the Super-deduction and special rate first year allowance guidance note

  6. plant and machinery for use primarily in an area which is a designated assisted area in an enterprise zone (companies only)

  7. plant and machinery for use primarily in an area which is a designated tax site in a freeport (companies only)

These are detailed further below.

First year tax credits were abolished from April 2020, although there is still a four-year clawback period.

Low emission cars

The amount of capital allowances available for cars are based on levels of CO2 emissions, as established at manufacture.

From 1 April 2021, the limit is 0g/km. From 1 April 2018 to 31 March 2021, the limit was 50g/km.

Please refer to the Capital allowances on cars guidance note for further commentary.

Zero-emission goods vehicles

FYAs at a rate of 100% are available for expenditure incurred on new goods vehicles which do not emit any CO2 when driven.

Expenditure qualifies for FYAs if the following conditions are satisfied:

  1. it is incurred in the period beginning 1 April 2010 and ending 31 March 2025 (corporation tax) or the period beginning 6 April

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Isle of Man

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s

30 Nov 2021 09:21 | Produced by Tolley Read more Read more

Partial exemption de minimis limit

This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may

19 Oct 2021 22:57 | Produced by Tolley Read more Read more

Requirement for estate accounts

Duty to prepare estate accountsThe Personal Representatives' (PRs) legal obligation to prepare accounts is set out in Section 25 of the Administration of Estates Act 1925. Their prescribed duties include:when required to do so by the Court, exhibit on oath in the Court a full inventory of the estate

21 Dec 2021 16:31 | Produced by Tolley Read more Read more