Hundred Percent (100%) First Year Allowance

For most cars, the AIA (Annual Investment Allowance) is not available and for capital allowance claims the standard 'writing down' method has to be used, enabling only part of the value to be claimed in the first year and the balance claimed in tax years ongoing (see 'Capital Allowances' and 'Writing Down Allowance').  For some special categories of car, however, it is possible to claim the full purchase value (or substantial part thereof, subject to tax efficiency) in the tax year of purchase.

Generally, the claim is applicable to electric cars and cars with zero CO2 emissions.  Other equipment that can be subject to the allowance includes zero emission goods vehicles, plant and machinery for gas refuelling stations and equipment for electric vehicle charging.