The drive to zero emissions and a new tax system?
With emissions being a large component in the calculation of Benefit in Kind, going forward, the calculations will clearly change as the march to zero emissions continues.
By 2030, the target is to have at least 50% of all new cars and 40% of new vans to have ultra-low emissions. That is anything lower than 75g/km of CO2. This lower limit is expected to fall in time, with a 2021 target of 50g/km being suggested.
To further encourage the take up of electric and hybrid-electric vehicles, the charge point grant of £300 will be changing to £500. The government says it is all part of the roll-out that will see massive investment in infrastructure.
There will be zero new petrol and diesel vans sold by the year 2040 but hybrids will exist alongside 100% electric vehicles. By then the company car tax system will have to have changed to accommodate their being such low emissions.
The BVRLA and the AA in a joint statement have called upon the chancellor to introduce a 2% Company Car Tax band for zero emission vehicles. At present, the same band is targeted to increase to 16% in 2019 and then drop to 2% in 2020.
The effect of emissions on driver choice is clearly demonstrated by industry figures that show an average of 145g/km CO2 for those who take a cash car allowance, whereas the average leased car emits 114g/km CO2.
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