UK Considering Differentiating Plug-In Hybrid Tax Incentives

AUG 30 2016 BY MARK KANE 2

Volkswagen Passat GTE

Volkswagen Passat GTE

UK is considering differentiating tax incentives for plug-in hybrids for companies, to better promote models with more all-electric range than others.

From March 1st, the UK government already modified its rules for its Plug-In Car Grant – lowering the maximum amount to £4,500 for BEVs and £2,500 for PHEV, as well as setting price cap for PHEVs:

Category 1 – cars with zero emission range of 70 miles or more and CO2 emission below 50 g/km. (£4,500, no price cap)

Category 2 – cars with zero emission range 10-69 miles and CO2 emission below 50 g/km (£2,500, £60,000 price cap)

Category 3 – cars with zero emission range 20 or more miles and CO2 emission 50-75 g/km (£2,500, £60,000 price cap)

A strong benefit that could be tweaked by 2020-2021 (and announced this Fall) is the Benefit in Kind program. HM Treasury is currently doing reconnaissance to bind the incentives with all-electric range. That would limit the support for cars that, on average, mostly uses its engine.

“The proposal is a system which defines ULEVs by sub-50g/km CO2 emissions, then divides them into bands based on their electric range, incentivising vehicles which can be driven longer distances without using a petrol or diesel engine.”

source UK’s HM Treasury via EV Fleet World

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2 Comments on "UK Considering Differentiating Plug-In Hybrid Tax Incentives"

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I think that has been the recommendation of many an EV Driver – to not credit much to an short range PHEV, to dissuade the automakers from making such vehicles in the first place! If the EV Range of a PHEV will only get some 10% of the Population of driving Commuters the ability to get to work and back on the EV Mode, then it has pretty much failed to make much change in the use of Petrol! However – if 90% of Britain’s Driving Commuters are able to Get from Home to Work and Back in EV Mode in a give PHEV with its EV Range, then it should be well supported! The next step along with this – is to provide incentives to companies to grow workplace EV Charging, starting with a 50%/50% Mix of Low and Medium Power EV Charging (since they don’t have 120 Volt Mains there, even the 16 Amp Standard is like about 3 kW Charging Rates and should suffice most EV/PHEV Drivers up to a certain Distance of EV Driving, and the Medium Level EV Charging could be provided with a 32 Amp Circuit that provides about 6 kW charging rate)! As… Read more »

The UK needs to go Metric as they quote both miles and km in the same line:
cars with zero emission range of 70 miles or more and CO2 emission below 50 g/km