The 100% first year allowance enables businesses purchasing low emission cars to claim the full cost of the vehicle as a tax deductible ‘expense’ in the year of purchase.
The allowance has been available for several years, but is being extended for a further period, to April 2021.
Currently, to qualify for the 100% allowance, a car must either be electric, or have CO2 emissions of 75g/km or less.
From April 2018, the threshold for eligibility will be reduced to 50g/km.
Please see here for further details regarding the tax benefits of ultra low emission vehicles, or consult your accountant or financial advisor.