Capital allowance for ZEV

[ucb]

If piurchasing a used EV thru the company, the capital allowance is Main Rate allowance at 18% of the value.
Is this allowance an annual deduction for corp tax and which value of the car is taken - market value or inital value (ie P11D value)?

[Eric Mc]

Actual cost as paid by the business i.e. what is shown on the purchase invoice.

(Pretty basic question to be honest).

[ucb]

Yes it is a pretty basic question but the answer is completely opaque fromthe information on HMRCs website.
I'm going to assume its not a recurring allowance on the basis that there is not outlay in subsequent years

[Eric Mc]

ucb said:

Yes it is a pretty basic question but the answer is completely opaque fromthe information on HMRCs website.
I'm going to assume its not a recurring allowance on the basis that there is not outlay in subsequent years

When a business buys an asset it has two things it needs to consider -

how it is shown in the accounts (capitalisation and depreciation policy)

Capital Allowance treatment for tax relief purposes

The two aspects can be very different because accounting rules and conventions often differ greatly from the tax treatment.

Do you have an accountant?