The government will legislate in Finance Bill 2018-19 to exempt employer-provided electricity from being taxed as a benefit in kind from April 2018.

This will apply to electricity provided in workplace charging points for electric or hybrid cars owned by employees.

The Treasury has not provided any details on how much this will cost the Exchequer.

This measure was one of several announcements on investment to electric cars and ultra-low emission vehicles as part of the government’s pledge to make the UK’s air cleaner.

James Hender, partner and head of the private wealth group at Saffrey Champness, said: 'The announcement of tax-free charging of electric cars at work is a headline grabber, but in reality is something of a gimmick.

'The amount of administration that companies would have been forced to comply with if the use of the electricity by vehicles was taxable is potentially enormous. The Chancellor’s tax giveaway was minimal, the headlines will be good and employers will not suffer the headache of working out how to comply with the legislation.'

The 100% first year allowance for business purchasing zero emission goods vehicles or gas refuelling equipment has been extended for a further 3 years.

This measure was announced to help the UK move to cleaner zero and ultra-low emission vehicles which will help improve air quality.

For zero-emission goods vehicles the three year extension will apply to qualifying expenditure incurred on or after 1 April 2018 for corporation tax and 6 April 2018 for income tax. The scheme will end on 31 March 2021 for corporation tax and 5 April 2021 for income tax.

For gas refuelling equipment the three year extension will apply to expenditure incurred on or after 1 April 2018 for corporation and income tax.

This measure is expected to cost the Exchequer £5m each year from 2018 to 2021.

Report by Amy Austin