Nunn: electricity is not a fuel when it comes to tax

Although the government continues to promote the use and development of electric cars, HMRC has failed to give the tax treatment of these vehicles much thought. Yvette Nunn CTA, director at Berkeley Associates, casts her watchful eye over the tax authority’s failure to classify electric cars for fuel advisory rates

Last year the government announced that from 2040 (that’s a lot less than 22 years in technology development time), new petrol and diesel cars will be banned. Quite a bold statement which has already had an impact on the sale of new cars and the value of second hand cars, diesels in particular, with some seeing a 25% fall. 

Responding to this challenge two leading manufacturers announced that they will stop selling new models solely powered by internal combustion engines; this even includes the manufacturer of the ubiquitous Chelsea tractor. It will be some feat to develop an electric or hybrid engine to not only move these hulks with the necessary amount of torque, but to move them at the speeds drivers demand on the open roads, and for distances further than the school gates too.

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