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Electric car tax breaks welcomed

Tax breaks for companies using electric vehicles, announced in the Pre Budget Report last week, have been welcomed in the region.

Mr Darling said that electric cars would be exempt from company car tax for five years and also gave a 100% first-year capital allowance for electric vans.

It means companies buying electric vans can write down the full cost of the vehicle against tax in the first year of ownership.

Electric vans cost less to run than diesel vehicles, but can be more expensive to buy.

The leading electric van producer, Smith Electric Vehicles, part of the Wearside-based Tanfield group, have welcomed the news.

Smith’s sales director Kevin Harkin said: “This welcome tax incentive will make electric vans much more appealing to fleet operators across the UK, as it removes a cost barrier to purchasing these new technology vehicles.

“The UK already produces the best electric vans in the world; now we also have the opportunity as a nation to lead the way in buying and using these environmentally friendly vehicles.

“We are delighted that Government has listened and acted to support us.”

Malcolm Page, deputy chief executive of regional development agency One North East, said: “We are now at the forefront of electric vehicle development and the tax incentives announced can only help to accelerate the switch to low-carbon transport, while boosting firms involved in the sector in our area.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .