Nunn: tax breaks may speed up adoption of electric cars

As tax on company cars escalates, Yvette Nunn asks whether there will be a revival of interest in the benefit when the government removes company car tax from lower emission vehicles in 2020

The company car has been falling out of favour for many employees over the years as the government has sought to tax them out of existence. Save for the die-hard few for whom it is probably more of a convenience than a benefit, saving the time and unpredictable costs of owning and running car, they just pay the tax for the privilege.

However, could this be set to change, and might an electric company reverse the trend.  

From April 2020 there will be no tax on a company car, if it is electric, or a hybrid if it can travel 130 miles on a charge and emits emissions of less than 51 g/km. In effect this means a purely electric car or an extremely efficient hybrid.

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