Understanding The Results
This page lists van capital allowance results using data from the DriveSmart van database.
Why This Page Focuses On Capital Allowances
Many businesses are more interested in the tax relief available on buying a van than in van benefit. Van benefit is dealt with separately on DriveSmart.
This page therefore focuses on business tax relief, including Annual Investment Allowance, 100% First Year Allowances and Writing Down Allowances.
Annual Investment Allowance
Annual Investment Allowance, or AIA, can allow a business to claim tax relief on qualifying plant and machinery expenditure up to the annual limit.
Vans can often be relevant to AIA because they are generally treated differently from cars for capital allowance purposes.
100% First Year Allowances
Qualifying new zero-emission vans may qualify for 100% First Year Allowances. This can allow the business to claim relief more quickly than ordinary Writing Down Allowances.
Year 1 Allowance
The Year 1 Allowance column estimates the first year's capital allowance using the cost after grant and the allowance rate shown in the table.
Year 1 Corporation Tax (CT) Relief
The Year 1 CT Relief column gives an indicative estimate of the corporation tax relief generated by the first year's capital allowance. Actual relief will depend on the business's tax rate and circumstances.
Plug-In Van Grant
Where a Plug-In Van Grant or similar government grant is received, the grant may reduce the qualifying expenditure for capital allowance purposes.
Writing Down Allowances
If full relief is not available through AIA or a First Year Allowance, tax relief may be spread over time through Writing Down Allowances.
Tax Relief Type
The Tax Relief Type column gives a broad indication of whether the van may fall under Annual Investment Allowance, 100% First Year Allowance or Main Pool Writing Down Allowance treatment.
Fuel Types
The Fuel column uses manufacturer and CAP-HPI vehicle data to identify the van propulsion system.
The fuel filter uses plain-English categories such as Electric, Diesel, Petrol, Hybrid, Plug-in Hybrid and Range Extender where relevant.
Display
Click on the 'Results Display' to search for vans displaying '20 Results', '50 Results', '100 Results' or 'All Results'.
Click on the column headings to sort the results by that column. For example, click on 'List Price' to sort by price, 'Year 1 Allowance' to sort by first-year relief, or 'Tax Relief Timing' to sort by the timing of business tax relief.
Search Bar
You can use the search bar to find specific manufacturers, models, derivatives, fuel types or tax relief terms.
Small Business Guidance
Many owner-managed businesses compare company cars and vans before purchasing a vehicle for business use. Although both are business vehicles, they are treated differently for capital allowances and other tax purposes.
Company cars
Company cars qualify for capital allowances based on their CO₂ emissions.
- New zero-emission electric cars may qualify for 100% First Year Allowances where the relevant conditions are met.
- Other cars normally qualify for Writing Down Allowances at either the main rate or special rate depending on their CO₂ emissions.
- Annual Investment Allowance (AIA) is not available for company cars.
Company vans
Most vans are treated as plant and machinery rather than cars.
Subject to the normal qualifying rules:
- Many vans can qualify for the Annual Investment Allowance (AIA), allowing up to 100% of the purchase cost to be deducted in the year of purchase (subject to the available AIA limit);
- Where AIA is not claimed or available, writing down allowances normally apply.
Two vehicles costing a similar amount may therefore produce very different capital allowances simply because one is legally classified as a car and the other as a van.
Remember that capital allowances are only one part of the overall cost. Businesses should also consider:
- Company car or van benefit rules
- Employer's National Insurance
- Running costs
- Vehicle Excise Duty
- Residual values
- Business suitability
DriveSmart shows capital allowances alongside company car tax, employer National Insurance and other vehicle information to help explain the overall tax position.
Businesses should consider the complete financial picture before purchasing or leasing a vehicle.
Important Notes
Calculations and classifications are based on standard van data. Optional equipment, grants, purchase date, accounting period, private use, leasing arrangements and the business tax position may affect the actual tax outcome.
DriveSmart provides factual comparison data and does not recommend vans or rank vans as best or worst.
DriveSmart reviews this page whenever HMRC or OZEV announce significant changes to the legislation or grant schemes affecting this topic.
Related Van And Tax Pages