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UK tax policy on EV

Discussion in 'Electric Vehicles' started by amwt, Jun 18, 2011.

  1. amwt

    amwt Member

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    Jun 18, 2011
    Messages:
    6
    Do the UK tax incentives (100% FYA; BIC full relief) apply to company purchase of used EVs?
     
  2. AndrewBissell

    AndrewBissell Member

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    I am not a tax adviser and I don't even play one on TV, but my understanding is:

    - 100% First Year Capital Allowances apply ONLY to purchases of brand new vehicles
    - The exemption from paying Benefit in Kind tax on an electric car provided by a company for private use applies to all EVs (new or used)

    Please make your own investigations, consult a tax adviser and do NOT rely on my words!
     
  3. amwt

    amwt Member

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    But you write caveats like a pro! Thank you for the information. I also gathered that if it's a business use pool car VAT on purchase and servicing could possibly be reclaimed, subject to charging VAT when the company disposes the car?
     
  4. Alan

    Alan Member

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    Location:
    UK
    My tax advisor came up with the same advice as Andrew "not a tax advisor" Bissell :smile: 100% allowance if its newly registered. No benefit in kind.

    VAT reclaim is possible provided there is no element of private use. If you are thinking of purchasing suggest you talk to Gian at the London store - he seems clued up when it comes to this.
     
  5. AndrewBissell

    AndrewBissell Member

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    Wasn't aware of the pool car VAT possibilities. You learn something every day. Thanks.
     

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