10.12.2012 BVRLA calls to retain tax breaks for EVs

The BVLRA, the UK's vehicle leasing and hire trade body is urging the government to maintain the tax benefits currently available to owners of electric and ultra-low emission vehicles.

Commenting on the Chancellor's Autumn Statement, BVRLA chief executive John Lewis reiterated the association's call for the leasing industry to retain its access to the 100% first-year allowances available on ultra-low emission vehicles.

"We are due to meet with the HM Treasury officials this month and will remind them that all the benefits of these allowances would continue to flow through to business end-users, as they do now. By removing the ability of the leasing industry to claim these allowances, the government will just make it more expensive for businesses to run greener fleets. There is no logic to it.

"As the vehicle leasing industry trade body you could say that we are biased, but the Committee on Climate Change, the Transport Select Committee and LowCVP are all in agreement."

With a raft of changes to the business car tax regime due next April, the BVRLA has also urged the Treasury to provide full details of all transitional arrangements in the draft Finance Bill due to be published on December 11.

In the Autumn Statement, the Government also confirmed that it will reconsider its plans to charge 13% benefit-in-kind payments on ultra-low emission cars, with an announcement expected in the April 2013 Budget.

Under the planned changes to BIK announced last April, the rate for drivers of electric vehicles would go from zero to 13% in April 2015, and for drivers of vehicles emitting 1g/km-75g/km it would go from 5% to 13%, an increase that would strongly disincentivise car buyers adopting ultra low-emission vehicles.

"The Government will consider the case for providing time-limited incentives through company car tax to encourage the purchase and development of ultra-low emission vehicles, while ensuring that all company cars are subject to a fair level of taxation," read the Statement. "The Government will continue to seek the views of car manufacturers and motoring group ahead of Budget 2013."

BVLRA, HeadlineAuto