CAR TAX changes introduced in March 2020 have had a positive effect on electric car sales as uptake has soared, according to experts at analysts Cornwall Insight.
Car tax benefit in kind changes saw extra tax fees scrapped on models purchased under salary sacrifice schemes. Tax charges were cut from 16 percent to zero percent on electric vehicles purchased under the scheme which ensured drivers could secure top of the range models for less.
A recent survey of more than 500 businesses across the UK found that 30 percent were already using electric vehicles in their fleets.
Ubitricity Electric Avenue project lamppost charging (Image: Siemens)
A further 46 percent said they had plans to make the transition while 16 percent said they have had initial discussions.
Experts at Cornwall Insight said the car tax changes provided an “incentive for businesses” to offer electric vehicles to staff.
Katie Hickford, an analyst at Cornwall Insigh also revealed that changes to the plug-in grant had also had an impact on a slight rise in sales.
She revealed improvement in models and extra availability had led to “greater choice” for those looking to make a switch.
She said models were “more of an attractive proposition” now than before due to increased vehicle ranges.
Ms Hickford said: “Resilient demand for BEVs appears to be driven by four key factors.
“From April 6, changes to the benefit-in-kind company car tax means zero emission vehicles pay no tax in 2020-21, providing an incentive for businesses to transition their fleets.
“Also, there have been changes to the plug-in grant in the March 2020 Budget, meaning that hybrid cars with fewer than 70 zero emission miles are no longer eligible for funding.
Read more: Express
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