Electric Car Tax Relief 2020

Car tax changes set to come into effect from april will be a welcome relief to many motorists according to electric car expert dan martin.

Electric car tax relief 2020. The credit amount will vary based on the capacity of the battery used to power the vehicle. As such company car drivers can save thousands of pounds a year simply. Cars registered from april 6 2020. For a basic rate taxpayer with a 2020 registered vehicle value of 20 000 with emissions of 30 g km and an electric range of 30 miles.

See the 10 cheapest electric cars of 2020 amount varies by battery size and car brand. I ve been driving an ev for several years now and have thoroughly researched state and federal tax credits and other incentives for a future purchase as well. The new company car tax band tables for 2020 to 2023 is set out below. Tax changes which come into effect in 2020 2021 will help to reduce company car tax bills for drivers.

Electric vehicle tax credit. Electric car tax details on the car tax company car tax fuel duty and congestion charge payable for electric cars in uk. Description of car what you can claim. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500.

04 01 tue mar 10 2020. Tax changes from 2020 21. All electric and plug in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to 7 500. New and unused co2 emissions are 50g km or less or car is electric first year allowances.

In addition the government has introduced five new cct bands for plug in hybrid cars which emit 1 50g of co2 km which will further benefit those. New and unused co2 emissions are between 50g km and 110g km. By luke chillingsworth published. Switching to an electric car can bring significant tax benefits for businesses and this is set to get even better from april 2020.

From 6 th april fully electric cars will pay no company car tax cct in 2020 21 just 1 in 2021 22 and 2 in 2022 23. Once an ev maker sells 200 000 eligible vehicles the federal tax credit goes away for vehicles sold by that car company. Earlier this year the government revealed electric vehicles will be exempt from company car tax in the 2020 21 tax year. As a milestone decision this is the first opportunity for company cars to be taxed at 0 as a benefit in kind bik helping businesses make the transition to zero emission vehicles and a potentially emission free future.

Financial year 2020 21 sees pure electric models zero rated for bik and these rates only climb to 1 and 2 for fy 21 22 and 22 23 respectively.