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BUDGET 2010: Plug-in hybrid BIK position confirmed

Date: 24 March 2010

How the Ampera will look when it arrives in the UK in early 2011

Drivers of plug-in hybrid and other ultra-low emission vehicles will be subject to a reduced BIK payment from next month, though the news will disappoint the business car industry that was calling form these vehicles to be exempt from benefit-in-kind tax, as will be the case with electric vehicles.

From next month until April 2015, the chancellor confirmed that vehicle emitting between 1-75g/km of CO2 will be subject to a lower banding. "The percentage of list price subject to company car tax will be halved for cars emitting between 1 and 75 g CO2 per km," read the Budget statement, which means vehicles such as Vauxhall's 40g/km plug-in hybrid Ampera would be in a 5% BIK banding. Pure electric vehicles without any internal combustion engine back-up will be eligible from a BIK exemption for the same period, and it had been hoped that the likes of the Ampera would be given a similar allowance.