Electric Vehicles: Taxation
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of supporting access to second-hand battery electric vehicles through reduced benefit-in-kind taxation on used electric cars.
Answered by Dan Tomlinson
The Government is fully committed to the transition to electric vehicles and a strong second-hand market for EVs plays an important role in this.
The Company Car Tax regime helps support the used electric vehicle markets, where electric company cars are sold after the end of their lease.
The majority of cars are bought in the UK’s second hand markets. At Autumn Budget the Government announced new Company Car Tax rates for 2028-29 and 2029-30 which will maintain very generous incentives to support electric vehicle take-up, and therefore the entry of electric vehicles into the second-hand market.
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