Diesel hybrid BIK decision praised
30 November 2011
Citroen and Volvo have joined Peugeot in welcoming the HMRC's decision to exempt diesel hybrid cars from the 3% BIK supplement.
As revealed exclusively by BusinessCar in our 15 November 2011 issue, HMRC has accepted that a diesel hybrid isn't liable for the 3% uplift, contrary to previous advice, which is good news for vehicles such as the Peugeot 3008 and 508, and Citroen's DS5, that take advantage of the firm's Hybrid4 technology, and the diesel range-extender hybrid Volvo V60 due late next year.
"This is fantastic news as we gear up for the launch of DS5 early next year," said Citroen fleet boss Andy Wady. "Hybrid4 represents a significant environmental advance."
Although Volvo hasn't yet announced pricing for the V60 Hybrid Plug-in, it claims the decision will save customers at least £200 per year.
BusinessCar received confirmation from HMRC earlier this month that new guidance would be issued, but it's not yet clear whether that guidance has yet been formally issued.
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