Tax Breaks - Hybrid Cars: Vehicle Tax Relief

Tax Breaks : Green Friendly Cars

After the 2006 Budget, there are a couple of breaks here:

Tax relief runs as follows:-

Flexible Fuel Vehicle Relief

Where you purchase a motor vehicle with a flexible fuel engine, you will be entitled to a 50% refund of the Vehicle Registration Tax (VRT) on the vehicle.

These are vehicles running on high-grade biofuels.

Timescale

This tax break for two years from 1 January 2006.

Car Reliefs

Where you purchase a motor vehicle with a hybrid engine, you will be entitled to a 50% refund of the Vehicle Registration Tax (VRT) on the vehicle.

A hybrid engine is one which is friendly to the environment.

Budget 2007: VRT refund of 50% for electric cars (cars which can be propelled by a rechargeable battery) is being introduced on a pilot one year basis, with effect from 1 January, 2007.

The Minister also made clear in Budget 2007 his intention to penalise vehicles which were bad for the environment by charging a greater rate of VRT and Motor Tax on such "gas guzzlers". A consultation process will be initiated.

Timescale

This tax break has been extended in the budget for 2005, and will now terminate on 31 December 2006.

The Role of Boylan & Dodd

If you require assistance with obtaining this relief, please contact us. You can eMail us by clicking here.

Where you purchase a motor vehicle with a flexible fuel engine, you will be entitled to a 50% refund of the Vehicle Registration Tax (VRT) on the vehicle. These are vehicles running on high-grade biofuels.
Timescale
This tax break for two years from 1 January 2006.

Where you purchase a motor vehicle with a hybrid engine, you will be entitled to a 50% refund of the Vehicle Registration Tax (VRT) on the vehicle. A hybrid engine is one which is friendly to the environment. Budget 2007: VRT refund of 50% for electric cars (cars which can be propelled by a rechargeable battery) is being introduced on a pilot one year basis, with effect from 1 January, 2007. The Minister also made clear in Budget 2007 his intention to penalise vehicles which were bad for the environment by charging a greater rate of VRT and Motor Tax on such "gas guzzlers". A consultation process will be initiated.
Timescale
This tax break has been extended in the budget for 2005, and will now terminate on 31 December 2006.
The Role of Boylan & Dodd
If you require assistance with obtaining this relief, please contact us. You can eMail us by clicking here.