UK EV leasing grows by 91% due to new tax incentive

UK EV lease boom

The number of UK drivers opting to lease an electric vehicle has almost doubled in the first six months of 2020 since a new tax incentive was introduced, according to EV specialists Octopus Electric Vehicles. The growth in EV leasing has contributed to an increase in total EV registrations of 157% so far this year, as ICE car sales slump by an average of 52%.

On April 6, 2020, the UK government eliminated Benefit in Kind (BIK) tax for drivers using an EV, instantly making leasing an EV through workplace salary sacrifice schemes — that is, company cars and related benefits — incredibly attractive. Previously, 16% BIK tax was applied to the vehicle, but now those who lease an EV via salary sacrifice pay for it completely tax-free. In contrast, ICE vehicles are still subject to an average of 27% BIK tax when using salary sacrifice.

Full article at Electrek – 7 October 2020 – UK EV leasing grows by 91% due to new tax incentive