Low carbon transport wins support
Published: 09 December, 2009
LONDON: The pre-Budget report stated that the Government will support for low-carbon transport.
From April 2010, electric cars will be exempt from company car tax for a period of five years. Electric vans will be also exempt from van benefit charge for five years.
A 100% first-year allowance will be provided for the purchase of electric vans, subject to confirming compatibility with state aid rules.
£30m in funding will also be provided to support the development of low-carbon transport, including through an expansion of the Technology Strategy Board's ultra-low carbon vehicles competition.
From 2012, the CO2 emissions thresholds for company car tax bands will be shifted down by 5 grams of CO2/km.
The graduated table of CCT bands will be extended downwards to a new 10% band for cars emitting up to 99 grams of CO2/km in place of the existing 10% band.
To encourage fuel-efficient travel, the fuel benefit charge multiplier will increase from £16 900 to £18 000 from 6 April 2010.
Following the announcement in Budget 2008 that the 20p/litre duty differential for biofuel would cease in 2010-11, the duty differential for biofuels will stop from 1 April 2010.