Budget 2014: Electric vans get capital allowance boost
19 March 2014
The chancellor has confirmed an extension of the scheme that allows businesses 100% first-year tax relief on electric goods vehicles.
To comply with EU subsidy rules, companies would not be able to claim the Government's £8000 plug-in van grant, but given the higher prices of the fledgling technology, the Enhanced Capital Allowance scheme should prove attractive.
The HMRC's advice reads: "The ECA scheme lets your business claim 100% first-year tax relief on investments in qualifying technologies and products.
"This means you can write off, for example, deduct - the whole cost, or up to the published claim value, of buying the energy-saving product against your taxable profits in the year of purchase."