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Key points
- A 2% benefit-in-kind rate will apply to fully electric cars from 2022-23 until 2024-25.
- Salary sacrifice anti-avoidance legislation does not apply to low CO2 emission cars.
- The installation of a charging point at an employee’s home may result in a taxable benefit.
- Note the difference in tax charges between electric bicycles and electric motorcycles.
- Substantial differences in benefit charges on similarly priced electric and conventional cars.
- Capital allowances will depend on emission levels.
Petrol has peaked and half of drivers are now considering switching to a fully electric car. Directors and employees who drive fully electric company cars will have a nil taxable benefit for 2020-21. For the previous tax year 2019-20 such vehicles were taxed at 16% of the list price so we can see that significant reductions in the taxable benefits of electric cars have been made from 6 April 2020.
For instance the previous...
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