100% first year allowances

If you buy an asset that qualifies for 100% first year allowances you can deduct the full cost from your profits before tax.

You can claim 100% first year allowances in addition to annual investment allowance (AIA), as long as you do not claim both for the same expenditure.

What qualifies

You can claim ‘enhanced capital allowances’ (a type of 100% first year allowance) for the following equipment, which must be new and unused:

  • electric cars and cars with zero CO2 emissions
  • plant and machinery for gas refuelling stations, for example storage tanks, pumps
  • gas, biogas and hydrogen refuelling equipment
  • zero-emission goods vehicles
  • equipment for electric vehicle charging points
  • plant and machinery for use in a freeport tax site, if you’re a company

You cannot normally claim on items your business buys to lease to other people or for use within a home you let out.

How to claim

Claim on your tax return.

If you do not claim all the 100% first year allowances you’re entitled to, you can claim the part of the cost you have not claimed using writing down allowances.