Pre-Budget Report – Company Car Tax – Electric Cars
A number of measures were introduced in the Budget which will be of interest to employees and company directors provided with a company car. This measure will benefit drivers of electric cars.
With effect from 6 April 2010 the taxable benefit percentage will be reduced to 0% (from 9%). This means that some employers will look to provide employees with company cars as a tax-free perk as the new reduced rate will apply for five years.
An electric car is defined as a car ‘propelled solely by electricity’.