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Electric cars will be exempt from company car tax for five years, according to Chancellor Alistair Darling revealing the 2009 Pre-Budget Report.
From April 2010 electrically-powered cars will be zero rated for benefit-in-kind company car taxation for five years.
Included in the Chancellor's announcement were electric vans which will be given a 100% first year capital allowance rate.
Darling added he would be "investing a further £30 million on low-carbon transport projects".
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