Good news for Hybrid vehicles
With CO2 emissions of 48g/km, the Volvo V60 D6 AWD will still benefit from the newly confirmed Ultra Low Emission Discount (ULED) for London’s congestion charge scheme when the new limit of 75g/km of CO2 comes into force on July 1, 2013.
Recent announcements regarding taxation of diesel hybrid cars mean it will also continue to benefit from being in the lowest BIK tax band.
Recently confirmed by Transport for London, the current Greener Vehicle Discount and Electric Vehicle Discount will be replaced by the ULED and bring the CO2 eligibility of vehicles down from 100g/km to 75g/km.
This means that the Volvo V60 D6 AWD will still benefit from free* entry into London’s congestion charge zone as well as reduced parking fees in some areas, at the same time as attracting zero first year vehicle tax and zero annual vehicle tax.
Companies purchasing the car also benefit from 100% first year write down allowance.
The V60 D6 AWD meets all the criteria laid out in the Mayor’s new policy for plug-in hybrids, such as:
- Minimum electric range of 10 miles (up to 31 miles)
- Maximum electric speed of at least 60mph (78mph)
- Rechargeable battery pack charged from an external source and combustion engine (11.2kW lithium-ion battery pack that can be charged via standard UK household 3-pin plug and also using the diesel engine**)
- Hybrid Benefit In Kind taxation was originally expected to rise from the current (2013-14) 5% to 15% in 2015-16.
However, the government has now confirmed that vehicles emitting between zero and 50g/km of CO2, which the V60 D6 AWD falls into, will be taxed at 5% in 2015-16 and 7% in 2016-17, instead of the higher 51-75g/km band, taxed at 9% and 11% respectively.
* £10 annual registration fee applicable
** dependant on state of charge of the battery