THE Government has given a huge hint that tax incentives will be available to company car drivers, businesses and private individuals if they choose ultra low emission vehicles.
Writing in its ‘The Road to Zero‘ road map towards an emission free future, the Government said that it would:
“take steps to accelerate the adoption of fuel-efficient motoring by company car
drivers, businesses operating fleets, and private motorists.”
That’s because it wants all new cars and vans to be effectively zero emission by 2040.
By 2040 the Government wants to end the sale of conventional petrol only or diesel only cars and vans.
“By then, we expect the majority of new cars and vans sold to be 100% zero emission and all new cars and vans to have significant zero emission capability. By 2050 we want almost every car and van to be zero emission,” said the Government.
The government suggested that electric vehicles (EVs) and hydrogen (Fuel Cell EVs) were among the cleanest vehicles to choose. It added also that “Range extenders, plug-in
and non-plug-in hybrids are amongst the cleanest vehicles on the market and can bring significant environmental benefits”.
It also added that cleaner diesels would play a significant part in the transition period to a zero emission future.
This could suggest a different company car tax regime for the newest and cleanest Euro 6 diesels. Currently all diesel cars have a company car tax banding surcharge of 4%.
The Road to Zero also included support for charging infrastructure to assist the transition to zero emissions.
LeasePlan‘s Managing Director, Matt Dyer said: “This strategy is long overdue. We find it promising to see the Government’s approach targeting not only infrastructure, but supporting the transition of fleets and vans to fully electric.
“We also welcome the support for the continued development of cleaner internal combustion engines and consultations on a new VED approach for vans, as these are crucial elements to the survival of business fleets.”
The BVRLA rental and vehicle association’s Gerry Keaney added:
“It is critical that the right incentives are in place to support this strategy.
“Fleets invest billions of pounds on new cars, vans and trucks each year and a significant portion of this purchasing power stands ready to bring thousands more plug-in electric vehicles on to the UK’s roads.
“This can only happen if they are given the right supporting environment to deliver a managed transition away from petrol and diesel engines.”