Policy paper

Capital allowances for business cars

This tax information and impact note extends the 100% First Year Allowance (FYA) for businesses purchasing low emission cars for a further 3 years to 31 March 2021.



This measure is designed to support transition in the UK to cleaner zero and ultra-low emission vehicles which will help improve air quality in the UK’s towns and cities and protect the environment for the next generation.

Published 2 November 2016