17.03.2026

Capital Allowances on vans just changed again. 🟥

Forward Asset Finance Ltd Commercial Finance Broker

Capital Allowances on vans just changed again. 🟥

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Capital Allowances on vans just changed again. 🟥

And most UK trade business owners won't find out until it's too late.

Here's what you need to know before April 2026:

The Annual Investment Allowance (AIA) lets you claim 100% of a van's purchase price against taxable profit in Year One.

Up to £1 million.

But from 1st April 2026 (Corporation Tax) or 6th April 2026 (Income Tax), the Writing Down Allowance rate drops from 18% to 14%.

Translation:

If you don't claim it all upfront, your relief shrinks faster.

The Electric Van Advantage:

New, unused zero-emission vans qualify for 100% First-Year Allowance until 31st March 2027 (companies) or 5th April 2027 (individuals).

This sits completely outside the AIA cap.

You could theoretically buy a diesel van fleet (claim AIA) and an electric van (claim FYA) in the same year.

Double relief. Fully legal.

The Reclassification Trap:

Double cab pickups with a payload of 1 tonne or more?

They've been reclassified as cars for capital allowances from 2025/26.

No more 100% AIA.

You're now on car writing-down rates.

If your accountant filed these as vans last year, they weren't wrong.

The rules changed under them.

Private Use vs. Company Ownership:

Sole traders: Must reduce your claim proportionately if there's private use (e.g., 80% business = 80% claim).

Limited companies: Claim 100%, but manage the van Benefit in Kind charge separately if there's private use.

Most accountants treat these the same. They shouldn't.

The Question:

What's sitting in your books right now that could be claimed differently before April?

I help UK trade and industrial business owners find the "Found Money" hiding in plain sight.

Not through spreadsheets.

Through an "Outside-In" lens – the way a buyer, competitor, or silent Chairman would see it.

DM me "AUDIT" for a 15-minute Diagnostic.

We'll find the dead capital sitting in your system and run the maths on exactly how much tax relief you're leaving on the table.

Because your accountant might be filing it right.

But are they filing it smart?

Drop me a DM in the comments, happy to have a conversation.
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  • Payments
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  • Finance
  • tax
  • Government Finances

I am David Howat, Managing Director of Forward Asset Finance. Forward Asset Finance is a trusted UK finance brokerage specialising in tailored funding solutions for new and established businesses, as…

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