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Diesel Electric hybrid tax position


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Peugeot 3008

Diesel Electric hybrid tax position
R Russell
The diesel-electric hybrid had not been invented when the UK tax authorities set up the last lot of legislation to deal with the calculation of benefit-in-kind (BIK) on cars according to fuel type. So how will the new Peugeot 3008 HYbrid4 be taxed? The scrapping of discounts for petrol/electric hybrids (such as the Prius) from April 2011 meant that most observers expected diesel hybrids to be taxed simply as diesels. This was also the view of HMRC until recently, when they re-interpreted the legislation to give prominence to the fact that hybrids of whatever primary fuel should be classified alongside petrol cars as a type A for P11D purposes. So for now the 3008 HYbrid4 is NOT subject to the 3% diesel penalty.



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