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Congestion charge exemption change will hit businesses from July 1

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26 April 2013

London Congestion Charge
The Prius is one of only three non-electric cars that will duck the new exemption limit

TRANSPORT for London (TfL) has confirmed that exemption from the London Congestion Charge will drop from 100g/km to 75g/km from 1 July 2013 – despite public backlash.

Until now, any car emitting less than 100g/km of CO2 – including the Fiat 500 TwinAir, BMW 116ED EfficientDynamics and Toyota Prius hybrid – were exempt from the London Congestion Charge.

How the changes will bite

  • CO2 limit for exemption drops from 100g/km to 75g/km….
  • …but cars that are currently exempt can extend exemption to 2016 IF you register before July
  • Only the Toyota Prius, Vauxhall Ampera and Chevrolet Volt plug-in hybrids will duck the new exemption limit
  • The fine for not paying rises £10 to £130

From 1 July, the new Ultra Low Emission Discount (ULED) will come into force, whereby only cars emitting less than 75g/km of CO2 will avoid the daily charge.

The ULED replaces the previous Greener Vehicle Discount (GVD) and the Electric Vehicle Discount.

However, the plans – which were originally proposed towards the end of last year (London Congestion Charge discounts to change next year) do provide a degree of light relief for company car drivers and small business owners whose cars currently emit between 75g/km and 100g/km.

Providing you register your car with TfL before July, you will continue to benefit from Congestion Charge exemption until 24 June 2016. This is a year longer than initially intended, with TfL proposing an exemption period of just two years in its original plans.

TfL is calling this ‘a sunset period’.

This sunset period means that a company car driver driving a qualifying car on a typical lease contract can enjoy the discount throughout their agreement – providing they register the car before the end of June.

Jay Parmar, British Vehicle Rental and Leasing Association (BVRLA), legal and policy director, said: “We applaud TfL’s pragmatic approach to Congestion Charge discounts. There aren’t many sub-75g/km vehicles out there, so extending the life of the previous GVD, will give small fleets a more realistic opportunity to choose greener, Congestion Charge-free models.”

Currently the only non-electric cars that emit less than 75g/km of CO2 are the range-extending Toyota Prius, Vauxhall Ampera and Chevrolet Volt plug-in hybrids. These run on electric power alone, with a back up petrol generator for when the batteries run out of charge.

However, it’s worth noting that if you buy a second-hand car that emits between 75g/km and 100g/km after 1 July, the Congestion Charge exemption is non-transferrable. This means you’ll be subject to the £10 daily charge, even if the previous owner enjoyed the 100% discount.

Penalties for not paying the London Congestion Charge will also rise by £10 to £130.

For more information, visit www.tfl.gov.uk

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Matt Morton

Matt Morton

Matt Morton is an automotive content writer for Business Car Manager

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