UK electric company car buyers warned of sharp fall in first-year tax relief from April 2027
By Eve
Claritax Books warns that from April 2027 the immediate corporation tax saving on buying an electric company car will fall from 25% to 3% of the purchase price, as 100% first-year capital allowances end and writing-down allowances are cut. On a £60,000 electric car bought at the main 25% tax rate, the first-year saving drops from £15,000 before the deadline to £1,800 afterwards. Rising Benefit-in-Kind values and higher employer National Insurance rates are also increasing the ongoing cost of providing electric company cars.
Why it matters
Fleets have only a few months left to buy under the current relief, which may pull vehicle orders forward and then soften demand afterwards. Charging operators and procurement teams planning workplace, depot or fleet charging should expect changes in the timing and scale of fleet electrification.
Source
- Original title
- “Vanishing capital allowances to push up cost of EV company cars, fleets warned”
- Published
- 10 November 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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