2012 Autumn Statement: Government to look again at ultra-low emission BIK in April Budget
05 December 2012
The Government has confirmed that it will reconsider its plans to charge 13% benefit-in-kind payments on ultra-low emission cars, with an announcement expected in the April 2013 Budget.
"The Government will consider the case for providing time-limited incentives through company car tax to encourage the purchase and development of ultra-low emission vehicles, while ensuring that all company cars are subject to a fair level of taxation," read the Government's Autumn Statement 2012. "The Government will continue to seek the views of car manufacturers and motoring group ahead of Budget 2013."
Under the BIK structure announced last April, the rate for drivers of pure electric vehicles would go from zero to 13% in April 2015, and for drivers of vehicles emitting 1g/km-75g/km it would go from 5% to 13%, a huge increase that many in the industry feel is putting drivers off adopting ultra low-emission vehicles.
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