Company Car Tax Break for Diesel Hybrids
Dan Harrison, Editor
Mon, 21 Nov 2011
HM Revenue and Customs (HMRC) has clarified that diesel elecvtric hybrids will not be subject to the 3% BIK tax levy of standard diesel cars.
This makes the tax status of the Peugeot 3008 and 508 hybrid-4, Citroen DS5 hybrid-4 and forthcoming Volvo V60 diesel electric plug-in hybrid much more beneficial.
Diesel-electric hybrids have now been incorporated in the type A tax band rather than the previous type D, which covers diesels but attracts a 3% levy on the Benefit in Kind (BIK) tax payment. This is likely to
translate to a saving of at least £200 per year for companycar drivers, depending on on the road pricing.
The clarification follows an analysis from HMRC rules and guidance notes by Volvo Car UK's tax consultants, Hampshire-based BCF Wessex, amidst fears that vehicles such as the low CO2 emitting diesel hybrids like the new V60 Plug-in at just 49g/km CO2 would inadvertently be incorporated in the diesel category.
The V60 Plug-in Hybrid integrates the very best properties from three different car types into one, single attractive sports wagon. At the press of a button, the driver can choose which ‘type' of carto drive:
pure, hybrid or power.
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