1. Plug in car grants (PICG) The PICG system will continue, and the government has committed to the grants until 2022-23. £403 million has been committed
- The PICG rate will reduce from £3,500 to £3000.
- Premium cars, costing £50,000 or more, meaning most Teslas, the Audi E-Tron and the Jaguar I Pace, to name a few, no longer qualify for the grant.The change is immediate, from 12 the March 2020.
2. The VED (road tax) surcharge for premium Battery Electric Vehicles (BEVs) over £40,000 will be abolished, saving £450 per annum.
3. The impact of the two points above is there is now a ‘hot spot’ between £40,000 and £50,000 on pure electric cars, with a £3000 grant and a 3 year lease saving £1350 in road tax since the announcement.
4. Company car tax rules with the new 0% benefit in kind rate for BEVs have been confirmed. The 2022-23 rates (with BEVs at 2% BIK) have been frozen until 2024-25.
5. Rapid Charging Fund – commitment of £500 million over the next five years to support the roll-out of fast charging network for electric vehicles. This is a major concern, particularly for urban dwellers without off street parking, so more needs to be done.
6. Capital allowances: Tighter Co2 emission thresholds for business cars to qualify for the 100% write down allowances in year one.
7. Lease rental restriction changes: Introduction of a new 50 g/km threshold for determining the 15% lease rental restriction on corporation tax relief.
8. Further air quality funding: Commitment of £304 million to support measures to improve local air quality. We expect this to see the acceleration of low emission zones such as the recent consultation announced in Glasgow.
9. Van benefit charge: From April 2021 the government will apply a nil rate of tax to zero-emission vans, to bring vans in to line with the company car tax changes.