Capital Allowances | Comcar

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Based on CO2 emissions

The table below shows the WDA allowance as a percentage based on the official CO2 g/km figure for the vehicle in the pool

2024/25

Allowance Co2 Emissions Rate
AllowanceFirst year allowanceCo2 Emissions0 or belowRate100%
AllowanceMain poolCo2 Emissions1 to 50Rate18%
AllowanceSpecial poolCo2 EmissionsAbove 50Rate6%

2025/26

Allowance Co2 Emissions Rate
AllowanceFirst year allowanceCo2 Emissions0 or belowRate100%
AllowanceMain poolCo2 Emissions1 to 50Rate18%
AllowanceSpecial poolCo2 EmissionsAbove 50Rate6%

2026/27

Allowance Co2 Emissions Rate
AllowanceFirst year allowanceCo2 Emissions0 or belowRate100%
AllowanceMain poolCo2 Emissions1 to 50Rate14%
AllowanceSpecial poolCo2 EmissionsAbove 50Rate6%

For corporation tax purposes the thresholds above apply to cars purchased on or after 1st April whereas for income tax purposes new tax years start on 6th April.

Finance Bill 2018-19 reduces the special pool rate from 8% to 6%

Finance (No. 2) Act 2023 extends the 100% First Year Allowance for electric vehicle charge points to 31 March 2025 for Corporation Tax purposes and 5 April 2025 for Income Tax purposes.

Capital allowances for vans

A van with zero CO2 emissions is eligible for a 100% first year allowance if purchased before April 2021.

Other vans bought new from 1st April 2023 can be fully expensed.

Annual Investment Allowance

The annual investment allowance means you can deduct the full value of qualifying expenditure up to the limit of £1,000,000 per year.

Where qualifying expenditure exceeds the annual cap, tax relief will be given under the normal capital allowance regime via the main or special rate pools, with writing down allowances being given at the appropriate rates.

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