Q. Can a Company Claim the 100% First Year Allowance for an Electric Car?

Q. My Company is Buying an Electric Car for me to Use for Business and Private Journeys. In Truth there will be very few Business Journeys. Can the Company still Claim the 100% First Year Allowance, although the Business use will be Small?

A. Your company can claim the 100% first year allowance if the car is acquired brand new and not second hand. It is irrelevant that you use the car mainly for private journeys, as you will be taxed on that benefit calculated at 2% of the list price of the car each year. This taxable benefit will increase on 6 April 2025 to 3% of the list price.



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