The 130% capital allowances superdeduction that comes into effect on April 1 presents a “major renewal opportunity” for van fleets, FleetCheck is forecasting.
The fleet software specialist says that businesses who have been considering buying Euro 6 compliant light commercial vehicles to meet the needs of Clean Air Zones or electric and hybrid vans as they begin EV operations for the first time now have an ideal moment.
Peter Golding, managing director, explained: “As long as you are a limited company buying new equipment using a method of finance that means you obtain outright ownership at the end, the superdeduction applies and there is no ceiling on how much can be claimed.
“For fleets, this represents a major renewal opportunity for vans and other commercial vehicles just at the moment that we are seeing new demands are being made on operations. For example, that could include Euro 6 vehicles in some areas of the country just as new Clean Air Zones start to come into effect.
“It also means that, as electric and hybrid vans are finally starting to reach the market in quantity, that this is an ideal moment to acquire EVs and start to learn about them operationally. These vehicles often remain much more expensive that petrol and diesel counterparts but, thanks to the superdeduction, the cost of acquisition is suddenly much more realistic and within reach for many more buyers.”
Also, Peter added, there were a lot of tired vans on fleets at the moment because of the demands that had been made on them during the pandemic.
“We are seeing vans that have been used in frontline pandemic fleets or home shopping that have covered a lot of miles in the last year and probably should be considered for replacement. Again, this is the ideal moment.
“While it is widely recognised that new van orders are often slow at the moment and many vehicles are in short supply, the superdeduction applies for the next two tax years, until 31 March 2023, so long lead times are not really a problem.”
Peter added that businesses should seek advice from their accountants to ensure that the superdeduction applied to any fleet spending they were planning.