Tax and electric vehicles: what you need to know

Stephen Relf, senior tax writer at Croner-I, examines the tax implications of buying electric vehicles and the impact of first year allowances (FYA)

The next few years will see a transport revolution as the UK government seeks to deliver on its commitment to phase out the sale of new petrol and diesel cars from 2035. Increasingly, accountants will be called on to help businesses navigate their way along the road to zero emissions.

This article sets out some of the key tax incentives for a company looking to purchase an electric car for use by a director or employee, highlighting some of the changes due to come into effect later this year.