A business can claim a 100% FYA on the purchase of very 'clean' new cars.

There is no £12000 upper limit to the cost of the car.

The detail:

100% capital allowances are available for:

low emission cars which

- are registered on or after 17 April 2002 and

- emit not more than 120gm/km CO2 - at April 2008 this is now 110gm - or are electrically propelled.

This allowance is expected to continue until 31 March 2008 - at April 2008 this is now extended, probably for another 5 years.

Other items of new plant also qualify for the 100% first year allowanace (FYA). The list is frequently updated. To view it, leave our website and visit the government website www.eca.gov.uk.

Important: the information on this page is based on our understanding of the finance acts and is reliant upon the finance acts passing into law as currently proposed. There may be changes. Please get suitable advice before taking or failing to take any action. Please read our craftily worded disclaimer.

TIMELINE This page prepared on 23 April 2002. Updated on 4 November 2002. Text amended on 16 October 2006. Updated on 2 May 2008.