Electric Vehicle on PCP as 100% First Year Allowance

New electric cars are listed as assets that qualify for 100% first year allowance, meaning that you can deduct the full cost from your profits before tax, during the tax year of the purchase. If you incur a loss, it can be carried forward to offset your profits the next year and so on. But people rarely buy a new car in cash, usually it's through PCP (Personal Contract Purchase). How would the 100% first year allowance apply to PCP, for instance, £2k deposit, 48 months of £280 monthly payments, followed by a balloon payment of £12k? Can the deposit and monthly payments be counted as capital allowance each year throughout the 4 years, and the balloon payment on the 4th year? If it was a HP (Hire Purchase) would it be different? How do we account for the cost of the EV being spread over several years?

Hi Tian Xu,
Please refer to:
Business cars
Thank you.