Capital Allowances Act 2001 section 45DA

Expenditure on zero-emission goods vehicles

Section 45DA provides a 100% first-year allowance for capital expenditure on new zero-emission goods vehicles, setting out the qualifying conditions, the eligible time period, and the relevant definitions.

• Expenditure on a new, unused zero-emission goods vehicle qualifies for a 100% first-year allowance, provided the vehicle is registered and the expenditure is not caught by the general exclusions in section 46.
• The qualifying period runs for 15 years from 1 April 2010 (corporation tax) or 6 April 2010 (income tax), giving a deadline of 31 March 2025 or 5 April 2025 respectively, though the Treasury has the power to extend this period by order.
• A zero-emission goods vehicle is defined as a mechanically propelled road vehicle designed primarily for carrying goods or burden, which cannot under any circumstances produce CO₂ emissions when driven — meaning it must be fully electric or otherwise produce no exhaust emissions at all.
• The Treasury may also amend the rules to specify that certain types of vehicle should or should not be treated as goods vehicles for the purposes of this relief, and the relief is subject to further exclusions set out in section 45DB.