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