Answers · UK 2025/26
What capital allowances can I claim on business vehicles?
Cars with CO2 emissions of 0g/km qualify for a 100% First Year Allowance. Cars with emissions of 1–50g/km get 18% Writing Down Allowance; over 50g/km gets 6% WDA.
Full answer
HMRC's capital allowances rules for business cars depend on CO2 emissions. Zero-emission cars (0g/km) qualify for a 100% First Year Allowance (FYA), giving a full deduction in year one. Cars with CO2 of 1–50g/km enter the main pool at 18% Writing Down Allowance (WDA) per year. Cars over 50g/km enter the special rate pool at 6% WDA per year. Vans and commercial vehicles (not cars) qualify for the Annual Investment Allowance of up to £1,000,000 giving a 100% deduction in year one. Where a vehicle is used partly for private purposes, the allowance is reduced proportionately. Electric and low-emission company cars also attract lower Benefit in Kind rates -- 3% BIK for zero-emission cars in 2026/27, rising to 7% by 2028/29.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.