Government review sees changes to 2020 benefit in kind ratings to boost low and zero emission vehicles
9 July 2019

Changes to the UK’s company car tax system will mean drivers choosing a pure electric car pay no benefit-in-kind charges from next year.

After a review of the industry changes brought about by the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions regulations, the Treasury has axed its previously published rates in favour of a new system.

It will mean that, for cars registered from April 6th next year, most benefit-in-kind rates will be reduced by two percentage points over the current system. For EVs, that means a zero percentage rate, which is also extended to vehicles registered prior to April 6th. 

That figure will also apply to hybrids and plug-in hybrids that are capable of 130 miles or more of pure electric range, with official CO2 emissions of between 1-50g/km - although no such models currently exist in the UK market.

However, the free ride won’t last long for EV users. Current plans are for the 0% rate to increase to 1% by 2021/22 and 2% in 2022/23, although the government says they “remain under review”.

In a statement the government claims the new figures will give businesses “the ability to make more informed decisions about how they make the transition to zero-emission fleets”.

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Comments
3

10 July 2019

Fining a person, which is what will actually occur, for NOT converting to eco-mentalism and buying into the EV flurry is akin to taxing those for not making more than 30K pounds a year,  - it's just Nanny-Stateism run amok

10 July 2019
Real_sluggo wrote:

Fining a person, which is what will actually occur, for NOT converting to eco-mentalism and buying into the EV flurry is akin to taxing those for not making more than 30K pounds a year,  - it's just Nanny-Stateism run amok

If someone can't afford to lease a cheaper EV like a Zoe, they really shouldn't consider leasing a car for a business, full stop. Just drive cheap used car and claim the mileage back to reduce tax... Far more cost effective.

10 July 2019

The latest short sighted tax dodge for the monied and business classes. The last tax regime said "buy diesel and you can pollute for as little money as you like, we will tax ther old petrol cars now it's saying but electric and we will tax the diesel cars". 

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