Tax Reductions for Electric Vehicles

20/12/2009

Chancellor Alastair Darling has announced new tax breaks for electric vehicles.  The plan was detailed in his pre-budget report.

Under the new rules, companies opting for electrically powered vehicles will benefit from a five year company car tax exemption. The Chancellor also announced that the full cost of any corporate taxes for commercial electric vehicles can be written off for the first year, offering significant financial incentives for organisations to transfer to an electric fleet.

The initial cost of purchasing an electric van is currently higher than that of a standard diesel van.  Electric vehicles (EVs), however, cost much less to run in terms of fuel and maintenance.  With the new tax breaks available, costs barriers are lowered for those fleet buyers moving to an electric fleet.

Private car owners will also receive tax breaks on electric vehicles.  Announced by the Government earlier this year, private purchasers will save up to £5,000 on the list price on any new electric car from 2011/12.

Both tax breaks show a clear move by the Government to support greener energy and in encouraging the rapid adoption of electric vehicle technology.

Allied Electric managing director Paul Nelson commented: “We are delighted with the announcement of new Government support for electric vehicles.  A large number of organisations are keen to move towards operating greener vehicles and these financial incentives will give those companies a much needed helping hand to do so.”

For more information on Allied Electric and their environmentally-friendly electric vehicle range, contact 0800 916 0083, email info@alliedelectric.co.uk or click here.

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