Company Car Tax Break for Diesel Hybrids
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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