VAUXHALL, which sells the range-extending plug-in Ampera, and Nissan, maker of the battery-powered Leaf, welcomed measures in this week’s Budget designed to boost the appeal of low-emission electric vehicles (EVs) for company car drivers.
We are delighted the Government has introduced the 0-50g/km bracket
Vauxhall calculates that company car tax changes provide a £2200 benefit over a four year period to 40 per cent tax payers who opt for the Ampera. That’s thanks to Benefit in Kind company car tax rates for Ultra Low Emission Vehicles (ULEVs) emitting less than 50g/km of CO2 being held at five per cent in 2015/16 and seven per cent in 2016/17.
James Taylor, Vauxhall’s Fleet Sales Director, said “We are delighted the Government has introduced the 0-50g/km bracket in which our cutting edge Ampera is classified. Creating this ultra-low carbon band means BiK rates stay at their lowest for company drivers looking to choose an Ampera and companies looking to add a to their company car choice list can do so with confidence now the Government’s ULEV BiK strategy is confirmed until 2020.”
Nissan also welcomed the Chancellor’s changes. It said that Benefit In Kind tax of five per cent of P11D value for the 2015/16 tax year instead of the previously planned 13 per cent would make company car buyers more likely to choose an EV. A company car driver paying 20 per cent tax will pay £24 per month in company car tax per month on a Leaf, while a 40 per cent tax payer will pay £47.
As well as the company car tax changes, there was a further boost for EVs in the budget in the form of an extension to 2018 of first year capital allowances for vehicles with CO2 emissions of less than 75g/km.