Logistics: Electric Vehicles

(asked on 5th June 2023) - View Source

Question to the HM Treasury:

To ask His Majesty's Government, what assessment they have made of the impact on electric vehicle usage by logistics companies of extending the 100 per cent tax-deductible annual investment allowance for capital spending to leased or hired vehicles.


Answered by
Baroness Penn Portrait
Baroness Penn
Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 19th June 2023

The Annual Investment Allowance (AIA) allows businesses to deduct the full value of a qualifying item of plant and machinery from profits before tax, up to the AIA limit of £1 million.

Capital expenditure by lessors on non-car electric vehicles (such as vans and HGVs) can qualify for the AIA where the asset is leased or hired out, but the AIA excludes expenditure on cars for which other allowances may be available.

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