Companies can claim 100% First Year Allowances on brand new electric cars with zero CO2 emissions purchased before 31 March 2026. Unincorporated businesses can claim until 5 April 2026. For second hand electric cars or hybrid vehicles with <50g/km emissions you can claim 18% written down allowance per year.
Benefit in kind for directors/employees of limited companies is based on a percentage of the list price which is increasing each year,
- 2% of the list price for 2024-25.
- 3% of the list price for 2025-26.
- 4% of the list price for 2026-27.
- 5% of the list price for 2027-28.
For unincorporated businesses all costs and capital allowances must be apportioned between business and personal use. This means that you must keep mileage records to support the split.