Budget to make e-cars better for business?
Company EV tax rules changed
Leccy Tech Chancellor Alistair Darling’s pre-Budget report has revealed that electric vehicles will be exempt from company car tax fees for five years starting in 2010.
The news has gone down well with e-car manufacturers, a spokesman for Vauxhall - doubtless with an eye on all those plug-in Amperas it now hopes to flog to travelling salespeople – saying the company “really welcomes” the incentive.
Darling’s report also revealed the introduction of a 100 per cent first-year capital allowance for electric vans, meaning fleet operators can write down the purchase price of a leccy van for their first year of ownership.
“We have campaigned very hard for 100 per cent capital allowances, so are delighted with the announcement,” a spokesperson at e-van maker Smith EV told Register Hardware.
So much for the carrot, but there is also a money-raising stick. The CO2 emission threshold that allows some cars to benefit from a lower ten per cent car tax rate has also been reduced from 120g/km to 99g/km.
The re-jigged emissions regime is expected to raise around £120m ($195m/€132m) per annum for government coffers.
Darling’s pre-Budget vehicle announcement has no impact on the Government's existing plans to offer incentives and rebates of up to £5000 ($8136/€5538) to private leccy car buyers from 2011. ®