The policy push for a net-zero economy is now hard-wired into the UK tax system, with many businesses investing in lower-carbon equipment, property upgrades and greener vehicles.
The tax system offers a range of permanent and time-limited reliefs that can cut the headline cost of those projects by up to 25%. We have summarised the main opportunities in this guide, together with the deadlines and practical steps we recommend you take during the rest of the 2025/26 tax year.
Tax reliefs for sustainable investment are generous but deadline-driven. If you are considering capital expenditure, fleet renewal or green R&D during 2025/26, please contact your accountant as early as possible to:
• Confirm which allowances apply and model the cashflow benefit
• Check interaction with grants, freeport rules and corporation tax thresholds
• Draft any advance assurance or CCA paperwork
• Ensure the claim is processed smoothly in your next tax return.
The sooner we discuss your plans, the more options we can keep open. We look forward to helping you make the most of the available incentives while supporting the wider transition to a low-carbon economy.
GUIDE: Tax relief opportunities for businesses embracing sustainability