UK govt grants vs corporate tax incentives?

[Robbols]

Hi all,
Apologies in advance if I sound ill-informed, but the UK govt just announced that it will withdraw the EV grant. This is different to the corporate tax incentives for buying an EV through a business right? That's how I'm planning to buy my GTS. So I'm desperately hoping the tax incentives stay in place! Explanations welcome! Thanks.

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[TaycanHero]

EV grant were only for personally financed EV's under £35k in value.

So you wouldn't be eligible on a Porsche Taycan.

A company car can be any value, and the entire amount can be written off against corporation tax. However, the car must be brand new to expense 100% of the cost. If it is not e..g. basically is new, but registered as the dealers, then only 18% of the cost of the car can be expensed as the vehicle is classed as second hand.

No changes are being made here. Only the personal EV grant is being ended, but then very few EV's are under £35k - unless you want the most basic of models or the smallest of batteries (so pointless for most people).

Also, rumours are flying that the increase in corp tax to 25% might be put on hold next year. That's a good thing.

 

[Robbols]

EV grant were only for personally financed EV's under £35k in value.

So you wouldn't be eligible on a Porsche Taycan.

A company car can be any value, and the entire amount can be written off against corporation tax. However, the car must be brand new to expense 100% of the cost. If it is not e..g. basically is new, but registered as the dealers, then only 18% of the cost of the car can be expensed as the vehicle is classed as second hand.

No changes are being made here. Only the personal EV grant is being ended, but then very few EV's are under £35k - unless you want the most basic of models or the smallest of batteries (so pointless for most people).

Also, rumours are flying that the increase in corp tax to 25% might be put on hold next year. That's a good thing.

@TaycanHero - thank you. Super clear answer in line with what I guessed. Much appreciated.

 

[Speuk]

EV grant were only for personally financed EV's under £35k in value.

So you wouldn't be eligible on a Porsche Taycan.

A company car can be any value, and the entire amount can be written off against corporation tax. However, the car must be brand new to expense 100% of the cost. If it is not e..g. basically is new, but registered as the dealers, then only 18% of the cost of the car can be expensed as the vehicle is classed as second hand.

No changes are being made here. Only the personal EV grant is being ended, but then very few EV's are under £35k - unless you want the most basic of models or the smallest of batteries (so pointless for most people).

Also, rumours are flying that the increase in corp tax to 25% might be put on hold next year. That's a good thing.

But important to remember that the car will then sit in its own tax pool at £0 and therefore tax will be payable on whatever the resale value is at the time. So basically you end up getting tax relief on the amount it depreciates but a nice cashflow advantage.

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