Capital Allowances Act 2001 section 212T

Cap on first-year allowances: zero-emission goods vehicles

Section 212T imposes an overall cap of 85 million euros on the total first-year allowances that can be claimed under section 45DA for expenditure on zero-emission goods vehicles, measured across the whole undertaking rather than just the individual claimant.

• The total section 45DA first-year allowances available to an undertaking are capped at 85 million euros of qualifying expenditure, after which no further allowances can be claimed.
• The cap applies across the entire undertaking, meaning expenditure by the investor, any partner enterprises, and any linked enterprises all count towards the 85 million euro limit.
• Where expenditure is incurred in a currency other than euros, it must be converted using the spot exchange rate on the day the expenditure is incurred.
• The Treasury has the power to increase the 85 million euro cap by statutory regulations.