Diesel hybrid put in lower tax band
Volvo’s V60 diesel hybrid has been put in tax band A by HMRC.
IT was a dose of good news for Volvo as Her Majesty’s Revenue and Customs (HMRC) declared that the company’s new V60 Hybrid Plug-in will be classified as a hybrid vehicle for tax purposes when it arrives on the UK’s roads in 2012.
As a diesel-electric hybrid vehicle it has been placed in tax band A rather than band D as previously, which covers diesels but also has a three per cent levy on the Benefit In Kind (BIK) tax payment. This should translate as a £200 annual saving for company car drivers, but the final figure which depend on the final price, which will be announced nearer the launch time.
The move has clarified fears by some manufacturers, including Volvo, that the HMRC rules and guidance would place low CO2 emission diesel hybrids in the same tax band as ordinary diesels.
The national corporate operations manager at Volvo UK, Selwyn Cooper, said: “We are delighted that HMRC has both cleared up the confusion as well as acknowledging the rightful banding for diesel hybrids is alongside its petrol hybrid siblings.”
Volvo says its V60 Plug-in Hybrid integrates the best properties from three different car types into one, single attractive sports wagon. At the press of a button, the driver can choose which ‘type’ of car to drive: Pure electric, hybrid or power.