17.03.2026

Capital Allowances on vans just changed again. 🟥

Forward Asset Finance Ltd Commercial Finance Broker

Capital Allowances on vans just changed again. 🟥

twitter icon


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.
Activate to view larger image,
 
  • Finance
  • tax
  • Government Finances
  • Payments
  • Business

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…

Follow us for more articles and posts direct from professionals on      
Growth, Business Growth, People and Culture

Organisational Development Without the Jargon: What OD...

Organisational Development, or OD, is one of those terms that sounds important, but can also feel vague, corporate, or…
Growth, Coaching, Busines Development

Sometimes The Next Step Is Just A Conversation

Sometimes the next step is just a conversation. One of the most common misconceptions I encounter about consultancy and…
Mindset, Coaching, Business strategy

Starting the Year with Reflection, Not Pressure

January can feel like a strange month for business owners, leaders, and professionals.On the surface, it’s full of…

More Articles

Business Management

Clarity in a Busy World: Why Sustainable Growth Depends...

🌿 Clarity in a Busy World: Why Sustainable Growth Depends on Slowing Down to Think In every conversation I’ve had with…
SME, Learning & Development

Training That Sticks: Turning Learning into Lasting Impact 🌸

We’ve all experienced it;  training sessions that feel exciting and full of promise in the moment, but somehow fail to…
SME, Training & Development

🌿 Before You Grow: Why Training Your Managers Might Be...

Growth is exciting;  new clients, bigger teams, fresh challenges. But as many business owners discover, expansion often…

Would you like to promote an article ?

Post articles and opinions on Manchester Professionals to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.