18.11.2011 Lower BIK rate confirmed for diesel-hybrids
With a number of diesel-hybrid models to be launched in 2012, the HMRC has confirmed that diesel-hybrids will not incur the 3% Benefit in Kind (BIK) rate surcharge that all other diesel models receive.
The 3% levy cannot apply to diesel hybrids because the ITEPA 2003 regulatory document that controls company car tax defines a 'diesel car' as being 'propelled solely by diesel'.
This will translate to an annual saving of around £200 for most company car drivers.
Three brand new diesel hybrid models will be available in the UK in early 2012: the Peugeot 3008 HYbrid4, the Citroen DS5 HYbrid4 and Volvo's V60 Plug-in Hybrid. Later in the year, two additional Peugeot diesel hybrids will be launched: the 508 RXH and the 508 saloon.
The first diesel-hybrid on the UK market, the Peugeot 3008 HYbrid4, offers up to 200 bhp with several dynamic driving modes, including 4WD, all-electric, automatic and sports settings. It will also return up to 74 mpg and just 99 gCO2/km (on the test). Following the 3008 will be the 508 RXH, based on the same 2.0 litre HYbrid4 power unit and with similar performance statistics.
2012 will also see Citroen launch their premium executive DS5 diesel hybrid with very similar statistics to the 3008, as it uses the same, or a very similar HYbrid4 drivetrain.
Volvo's new V60 (pictured left) will be the world's first diesel plug-in electric hybrid, with CO2 emissions estimates at just 49 g/km. This sports wagon offers three different driving modes at the press of a button: pure electric, hybrid or power mode. In pure electric mode, the V60 is able to travel for up to 32 miles in electric-only mode, whilst in hybrid mode the diesel engine and electric motor interact to return 49g/km and 150 mpg, with a total range of 746 miles.
Volvo Car UK's national corporate operations manager Selwyn Cooper, comments, "We are delighted that HMRC has both cleared up the confusion and acknowledged that the rightful banding for diesel hybrids is alongside its petrol hybrid siblings."
Andy Wady, Citroen UK's Fleet Director, said, "This is fantastic news as we gear up for the launch of DS5 early next year. It's also great news for many company car drivers already attracted to DS5 and the Hybrid4 powertrain with its impressive fuel economy, low CO2 emissions, free VED, no London Congestion Charge... and now a company car tax rate at just 10%."
The new wave of diesel hybrid cars represents a great opportunity for business and individuals to actively reduce their impact on the environment, without the compromises that are often associated with low emission vehicles, such as 'range anxiety' with electric cars for example.
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