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HM Revenue and Customs (HMRC) has
announced diesel-electric hybrids will be classed as a ‘hybrid' for tax purposes.
Diesel Hybrid Car News Page
Diesel-electric
hybrids have now been incorporated in the type A tax band rather than
the previous type D, which covers diesels but attracts a 3% levy on the
Benefit in Kind (BIK) tax payment. This is likely to translate to a
saving of at least £200 per year for company car drivers.
The clarification follows an analysis
from HMRC rules and guidance notes, amidst fears that vehicles such as the low
CO2 emitting diesel hybrids like the new V60 Plug-in at just
49g/km CO2 would inadvertently be incorporated in the diesel
category.
The Volvo V60 Plug-in Hybrid, pictured
above, will benefit from the annoucements, along with the
diesel-electric HYbrid4 vehicles in the Peugeot range, that will include
3008, 508 RXH and 508 Saloon. |
