Union Budget 2020 India: The 2019 Union Budget was a landmark one for electric mobility. This applies retroactively to electric company cars already registered before the 6 April 2020 introduction date for the new rates. Vehicle Registration Tax (VRT) “We are optimistic that the lack of clarity in recent years is behind us and hope that five-year visibility is maintained in the years to come.”. Nigel Morris, tax director at MHA MacIntyre Hudson, said: "The proposal to retain the ability for businesses to reclaim 100% First Year Allowances on the purchase of a zero emission vehicle up to April 2025 will help some companies to fund the additional costs of an EV over an ICE (internal combustion engine) car with the accelerated allowances. This is a good day for company car drivers and our members.”, Simon Carr, chief commercial officer at Alphabet, said: “The announcement of 0% BIK tax rates for pure battery electric vehicles from April 2020 – followed by 1% in April 2021 and 2% in April 2022 – could see a renaissance for the company car and give us real momentum on the road to zero. Furthermore, it said it will make an “unprecedented investment” in urban transport, starting by confirming allocations of over £1bn from the Transforming Cities Fund. Check how much they'll cost to run with our Car Running Cost calculator. These include junction improvements to the A350 in Wiltshire, a link road connecting Chesterfield to Staveley, and a dual carriageway in Warwickshire. We run down the very best affordable electric city cars, ... Volkswagen’s smallest electric car predates the new ID range and was updated in 2020 with … The increase will apply to auto fuels from midnight on 8 October 2019 and to solid fuels from 1 May 2020. Figures published by the Society of Motor Manufacturers and Traders shows 38,000 pure electric new cars were bought in 2019, more than double the total in the previous year. The fleet industry has been waiting for the new benefit-in-kind (BIK) tax rates to be officially adopted since July 2019, when HM Treasury published how it intended to change them to counter the impact of the new emissions testing regime – the Worldwide Harmonsied Light Vehicle Test Procedure (WLTP). The emphasis on zero-emissions electric power for road vehicles is gathering momentum fast, with Budget 2020 confirming that all zero-emission electric cars will be exempt from company car tax in 2020/21. This will include a Rapid Charging Fund to help businesses with the cost of connecting fast charge points to the electricity grid. “The Government recognises the value of the company car market in supporting the transition to zero emission technology. The carbon tax on fuel will increase by €6 from €20 per tonne to €26 per tonne. Learn more about installing workplace EV charging The development of these alternatives will be supported by the government more than doubling its investment in the Energy Innovation Programme. by Jack Sexty Jun 14 2020 . CAR TAX changes for April 2020 were given the green light by chancellor Rishi Sunk in today's Budget paving way for heavy discounts for electric cars. This is reflected in a higher proportion of company cars with zero emissions – compared to private registrations – and the high proportion of these that are subsequently supplied to the second-hand market after 3-4 years,” said the Treasury. For cars first registered from April 6, 2020, most company car tax rates will be reduced by two percentage points, with a new zero percentage rate for pure electric vehicles (EVs). Typically, if your employer offers you a non-electric company car, you will be subject to BIK on it. Claire Evans, head of fleet consultancy at Zenith, said: “The fleet industry will take real confidence from the confirmation of benefit-in-kind (BiK) tax rates and the further announcement they will be frozen at 2022/23 levels for an additional two years. The measure includes changes to the appropriate percentage figures for all cars classified as being zero-emission vehicles under both the NEDC and WLTP test procedures (see table below). Not only was GST on electric vehicles (EVs) slashed to 5%, the Budget … This will also encourage car manufacturers to develop these cleaner technologies more quickly. The €50,000 limit means cars like the Tesla Model X won’t fully benefit from the 0% BIK rate on electric cars Wed, Oct 10, 2018, 10:59 Updated: Wed, Oct 10, 2018, 11:31 Peter Hamilton Vehicle Registration Tax (VRT) 2019 to 2022 Extension of Exemption. The wishlists for Union Budget 2020 are out and the auto sector hopes there will be a push for electric mobility. This is an important, positive moment on the UK’s Road to Zero journey.”. This brings the total amount that government has provided to affected local authorities to £880m. The Government says it is committed to bringing roadside concentrations of polluting nitrogen dioxide gas within legal limits in the shortest possible time. Legislation will be introduced to reduce the CO2 emission thresholds from April 2021, which determine the rate of capital allowances available through which the capital expenditure for business cars can be written down. Summary of Electric Car Tax Benefits. By providing clarity of future the appropriate percentages, businesses will have the ability to make more informed decisions about how they make the transition to zero emission fleets.”, It added: “Appropriate percentages beyond 2022-23 remain under review and will be announced at future fiscal events. The Government announced that the fuel duty freeze will continue for a further year. Relief for Hybrid and Plug-In Hybrid Vehicles (PHEVs) Relief for hybrid electric vehicles and PHEVs is being extended until 31 December 2020. “Fleets typically plan in five to 10-year cycles, and confident purchasing decisions cannot be made without sight of future tax liabilities. 2 MHCLG's CDEL budget in 2020-21 includes technical adjustments along with Budget announcements since Budget 2018. The fuel duty freeze and £500m investment in charge point infrastructure was really welcome, but it was the clarity around benefit-in-kind tax rates, which will have the biggest impact. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News. This is expected to be extended in Budget 2020 For Electric Vehicles BIK is 0% where This is still a great budget proposition. Look out for Fiat, Skoda, Mazda and Vauxhall as the cheapest electric cars in 2021. Volvo’s exquisite XC40 SUV now has even more reason to be on your company car shopping list: the T5 Twin Engine PHEV model combines a 1.5-litre three-cylinder petrol engine with an 82hp electric motor to provide emissions of 47g/km and a BIK rate of 12% for 2020/21. For electric cars, the BiK rate is 0% for the 2020/21 financial year; previously it was 16% for the 2019/2020. Leave a comment for your chance to win £20 of John Lewis vouchers. 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