Chancellor Alistair Darling has announced a zero per cent company car tax on electric vehicles in today's pre-budget report.
Darling wants to stimulate the market for greener vehicles by making them more attractive to businesses, as well as encouraging the set-up of charging infrastructure and providing an incentive for car makers to build electric cars.
The zero per cent rate will run for the next five years. By the end of this period, electric cars should be mass-produced and a more common site on Britain's roads
At present there are only 50 electric vehicles registered as company cars, out of 1.1 million company cars on the road. Company car tax rates start from around nine per cent for an electric vehicle.