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Tax Benefits of Providing an Electric Vehicle Company Car for Director-Owner Companies

Introduction This article summarises the principal tax benefits and considerations for a director-owner company providing a wholly electric vehicle (EV) as a company car in the 2025/26 tax year. The analysis covers capital allowances, benefit-in-kind (BiK) taxation, reimbursement of charging costs, VAT implications, salary sacrifice arrangements, and other relevant factors. Capital Allowances 100% First-Year Allowance…