Tax Breaks For Commercial Electric Cars And Vans
by Orlandy - December 11th, 2009.Filed under: Auto Industry.
The UK government has included commercial cars and vans in tax breaks on electric vehicles, previously restricted to private owners.
Now commercial and fleet buyers who use electric cars will be exempt from company car tax, electric vans from a van benefit charge for five years, plus the cost of the van can be recovered from corporation tax in the first year. Businesses are expected to be keen to take on electric vehicles as they face mounting pressure to cut emissions and also it is relatively easy for commercial owners to implement recharging facilities.
Private buyers of electric cars will benefit from a tax break of between £2 – 5K from this year, but manufacturers and industry analysts believe that further government subsidies will be required to support this in the first years after launch to offset the higher costs of electric vehicles.
Businesses welcomed the move on Wednesday after a period of speculation:
“This will make business buyers much more interested in electric cars and vans,” said Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders.
The British Vehicle Rental and Leasing Association’s chief executive, John Lewis, said: “We are really pleased that the chancellor has listened to our call to modernise the business tax regime and give a clear, long-term incentive for companies willing to be early adopters of electric cars and vans.”