Can your business claim capital allowances on EV chargepoints?

Qualifying new and unused EV chargepoint equipment can receive a 100% first-year allowance, reducing taxable profits rather than refunding the installation price [S1]. HMRC states expiry dates of 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax [S2]. Ownership, qualifying costs and grant contributions still need checking with your accountant. Checked October 2026.

Last checked 16 October 2026

What capital allowance applies to EV chargepoints?

HMRC’s specific first-year allowance lets an eligible business deduct the qualifying cost of new and unused electric vehicle chargepoint equipment from taxable profits [S1]. It is a tax calculation, separate from a grant, the customer charging tariff and the vehicle’s own tax treatment.

Do not interpret “100% allowance” as reimbursement of your installation. The deduction reduces the profit on which tax is calculated. Its cash effect depends on your business’s tax position. Check with your accountant before including relief in a purchase decision.

The equipment scope also matters. Ask the installer to separate charger hardware, installation, electrical distribution, civils, connection work, software and ongoing support. Your accountant can then identify the qualifying expenditure instead of treating an unitemised project total as a confirmed claim.

When does the chargepoint first-year allowance end?

HMRC states that the allowance has been extended to 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax [S2]. These are different tax deadlines; they are not a universal commissioning deadline for every grant.

The dates come from HMRC’s extension notice [S2]. Check the legislation and current HMRC guidance again before a claim if your contract or project crosses the deadline. This guide assumes no later extension.

Do not assume paying a deposit locks in relief on the whole installation. Give your accountant the signed contract, payment terms, delivery information and commissioning record so the expenditure date can be established. Include the leasing or hire purchase terms in that review if you are spreading equipment payments.

How does a chargepoint allowance change your installation cost?

Use this illustration, not a quote. Assume your accountant has confirmed £12,000 of qualifying expenditure, with no grant or third-party contribution. This is an arbitrary tax example, not an installed price range.

The percentage comes from HMRC’s first-year allowance guidance [S1]. The invoice still requires payment under your contract. This table does not predict a tax refund.

To work out a tax cash benefit, compare the tax calculation before and after the deduction using the relevant rates, available profits and loss rules for your business. The amount and timing need your accountant’s confirmation. This guide deliberately does not apply one Corporation Tax rate to every reader.

For project appraisal, calculate operating cash flow before tax first. Add any usable tax cash benefit at the point it arises. Do not deduct the full allowance from the installation price and then count the tax effect again.

The charger ROI guide explains why utilisation, electricity costs and maintenance still determine operating returns. A tax allowance cannot create charging demand.

How do capital allowances and capital grants interact?

HMRC’s contribution rules affect expenditure funded by other people or grants [S4]. Keep the gross installation price, grant support, your contribution and any remaining eligible expenditure as separate figures.

For example, assume £12,000 of otherwise eligible cost and an assumed £2,000 contribution which your accountant confirms reduces qualifying expenditure. The remaining base is £12,000 − £2,000 = £10,000. At a qualifying 100% first-year allowance, the deduction is £10,000, not £12,000 [S1], [S4].

That example does not establish how every grant is treated. Provide the award agreement to your accountant and check its exact effect before claiming. Do not add together a grant percentage and an allowance percentage as if both were cash paid towards the same invoice.

Is there a government charging point grant as well?

The Workplace Charging Scheme supports eligible purchase and installation costs. Current guidance gives up to 75% support, capped at £500 per socket and 40 sockets across an applicant’s sites, until 31 March 2027 [S5].

The applicant needs a voucher before installation, and the chosen authorised installer claims the support. Guidance requires installation and voucher redemption within its validity period of 180 days [S5]. Check the scheme’s final closure requirements as well as the voucher expiry before scheduling work.

Tax relief and grant eligibility are separate checks. A charger qualifying for a tax allowance is not automatically eligible for this grant. Start with the Workplace Charging Scheme guide. For commercial fleet depots, also check the Depot Charging Scheme without assuming that support can be claimed twice.

Who claims under fully funded, part funded and self funded charging?

Fully funded means the provider pays for, owns and operates the equipment while you provide the site. Do not assume your business can claim on capital expenditure incurred by that provider. Ask who owns the asset and who is the intended tax claimant.

Part funded arrangements share the capital requirement. Your contract should identify your contribution, ownership and any buy-out. HMRC’s contribution rules mean the full project price is not automatically your qualifying expenditure [S4].

Self funded means your business buys the equipment and bears operating costs. Your accountant still needs to verify eligibility, expenditure date and the appropriate relief. AIA is a separate possible route with a standard £1 million limit and business-sharing rules [S3]. No route should be selected without checking your circumstances.

Compare installer funding versus buying using the same charging demand. Review lease length, parking allocation, maintenance, liability, rates, tariff control and removal costs with your advisers. An allowance does not settle those commercial terms.

What records should you keep for the claim?

Build a file containing the invoice breakdown, contracts, asset ownership details, evidence the equipment is new, payment schedule and grant documentation. Ask your accountant to record the allowance chosen against each cost.

HMRC’s claim guidance directs companies and sole traders through their relevant tax returns [S6]. Your accounting basis matters: HMRC notes that cash-basis sole traders normally claim capital allowances only on business cars [S7]. Check the treatment of equipment costs with your accountant rather than assuming the company route applies.

What should you do next?

Obtain a defined installation scope and ask your accountant to confirm the eligible expenditure, timing and claimant. You can get matched with an installer that covers your area to prepare that scope.

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