Pre-Budget Report 2009 - "2010 - the year of the electric car", says KPMG
Electric vehicles to help rescue UK auto suppliers whilst helping businesses become greener
Wednesday, 9 December 2009
Harvey Perkins, KPMG Associate Partner said:
"2010 could be the year of the electric car.
"By exempting electric company cars from company car tax and giving them 100% first year capital allowances, it will encourage fleets to invest and encourage production.
"The Chancellor has provided a real incentive for employers to invest in this technology. The big issue with these things is price - the technology is currently expensive. A conventionally engined Polo (emitting less than 120g/km of CO2) with a list price of (say) £10,000 would give rise to a tax charge of only 10% of that list price (13% for a diesel) so £1,000. .
"But broadly, this is a very good idea - it's all about seeding the market. Let's not forget that when the 120 g/km rule came in there were only 3 or 4 cars that were sub-120. It's around 500 now”.
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About KPMG: KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with 11,500 partners and staff. The UK firm recorded a turnover of €2.2 billion in the year ended September 2008. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.