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Restructure of UK plug-in car grants mechanism

Porsche Cayenne S Hybrid rechargingThe Government has confirmed that the current structure of the UK government’s Plug-In Car Grant will end this year, coinciding with the sale of the 50,000th electric vehicle (EV) or the end of the budget period, whichever comes first.

The announcement came following the release in April from the Office of Low Emission Vehicles (OLEV) that eligible vehicles must meet criteria in one of a new three-tiered scheme depending on emission levels and zero-emission-capable mileage.

The tiered system will replace the current universal grant of £5000 for all vehicles with emissions under 75 g/CO2 km at a yet to be determined date this year. Until then, OLEV said it will honour any deal placed on its system for a qualifying car, provided that the vehicle has been allocated to a customer and is delivered and registered within nine months.

Category 1

CO2 emissions less than 50g/km & a zero emission range of at least 70 miles

Category 2

CO2 emissions less than 50g/km & a zero emission range of 10 – 69 miles

Category 3

CO2 emissions 50-75g/km & a zero emission range of at least 20 miles.

More than 25,000 Plug-In Car Grants have been handed out to car buyers since 2010 with take-up on the rise as 2,000 grants were claimed in January 2015 alone.

The level of grant funding under the new scheme is still to be determined.

Ultra low emission vehicles (ULEVs) are vehicles that produce less than 75 grams of carbon dioxide (CO2) for every kilometre travelled. These vehicles benefit from a number of tax benefits for both private and business ULEV users.

Benefit in Kind Taxation for 2015-16 is as follows:

Petrol

Zero g/km CO2 emissions: 5%

0-50 g/km CO2 emissions: 5%

51-75 g/km CO2 emissions: 9%

76-94 g/km CO2 emissions: 13%

95-99 g/km CO2 emissions: 14%

Diesel

Zero g/km CO2 emissions: 8%

0-50 g/km CO2 emissions: 8%

51-75 g/km CO2 emissions: 12%

76-94 g/km CO2 emissions: 16%

95-99 g/km CO2 emissions: 17%

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