Budget Summary- Plug-in Hybrid Electric Vehicles

Under the company car tax rules, the amount charged to tax depends predominantly on the list price of the car and the level of it CO2 emissions. New European Union and United Nations emission standards applying from 1 January 2025 found higher CO2 emissions for plug-in hybrid electric vehicles (PHEVs) than under previous standards.

To mitigate the increase in the benefit in kind charge that would apply as a result, the Government are introducing an easement for a limited period. During the easement period, which will run from 1 January 2025 to 5 April 2028, the benefit in kind tax charge will be determined by reference to a deemed nominal value of 1 where the car was first registered on or after 1 January 2025, it’s CO2 emissions figure is 51 or more, it was registered under an emissions figure is 51 or more, it was registered under an emissions standard other than the Euro 6d-ISC-FCM or Euro 6e standard and the electric range is at least one mile.

Antone who has an eligible PHEV car prior to 6 April 2028 will continue to benefit from the easement until the earlier of the date on which the arrangements are varied or renewed and 5 April 2031.