Autumn Incentive to Travel Cleanly
The Chancellor’s Autumn Statement for 2016 included a number of tax incentives to encourage cleaner travelling.
Hammond announced a new measure to provide a 100% first-year allowance (FYA) for expenditure incurred on electric charge-point equipment. This allowance will expire on 31 March 2019 for Corporation Tax purposes and 5 April 2019 for Income Tax purposes, so he wants to encourage a sense of urgency.
The measure is designed to support the development and installation of electric recharging equipment for electric vehicles as part of the process of promoting the wider uptake of such vehicles. It will encourage the use of cleaner vehicles by making electric charge-points a more common feature on the high street.
The measure complements the 100% FYA for cars with low carbon dioxide (CO2) emissions, and the 100% FYA for cars powered by natural gas, biogas and hydrogen. The current 100% Annual Investment Allowance for expenditure on other plant and machinery is available on expenditure up to £200,000 from 1st January 2016.
In addition, the Chancellor announced that Company Car Tax (CCT) bands and rates for 2020-21 are being amended to provide stronger incentives for the purchase of Ultra Low Emission Vehicles which will attract new, lower rates for the lowest emitting cars. The appropriate percentage for cars emitting greater than 90g CO2/km will rise by 1 percentage point.
For more information on how these and other tax announcements in the Autumn Statement may affect you, please call or email your main contact here at WSM.