In the Spring Budget 2020, the Government announced that it planned to extend the 100% first year allowances for zero-emission cars, zero-emission goods vehicles and equipment for gas refuelling stations by four years from April 2021.
It has recently been confirmed that this extension has been passed and will run until 31 March 2025.
CO2 emission thresholds will also be reduced from April 2021. These determine the rate of capital allowances available through which the capital expenditure for business cars can be written down. The thresholds will be reduced from 50g/km to 0g/km for the purpose of the first year allowances for low CO2 emission cars and from 110g/km to 50g/km for the purpose of writing down allowances for business cars.
Full government guidance can be found here.