Low carbon transport wins support

Published:  09 December, 2009

LONDON: The pre-Budget report stated that the Government will support for low-carbon transport.

From April 2010, electric cars will be exempt from company car tax for a period of five years. Electric vans will be also exempt from van benefit charge for five years.

A 100% first-year allowance will be provided for the purchase of electric vans, subject to confirming compatibility with state aid rules.

£30m in funding will also be provided to support the development of low-carbon transport, including through an expansion of the Technology Strategy Board's ultra-low carbon vehicles competition.

From 2012, the CO2 emissions thresholds for company car tax bands will be shifted down by 5 grams of CO2/km.

The graduated table of CCT bands will be extended downwards to a new 10% band for cars emitting up to 99 grams of CO2/km in place of the existing 10% band.

To encourage fuel-efficient travel, the fuel benefit charge multiplier will increase from £16 900 to £18 000 from 6 April 2010.

Following the announcement in Budget 2008 that the 20p/litre duty differential for biofuel would cease in 2010-11, the duty differential for biofuels will stop from 1 April 2010.

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