Grant electric vehicle tax breaks on personal car leases

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Grant electric vehicle tax breaks on personal car leases

Petition Details

Pass legislation that allows electric vehicle (EV) personal lease holders to claim a deduction against their tax return, resulting in the same post-tax cost as business leases where those using the leased vehicle pay tax at the prevailing Benefit in Kind rate.

Additional Information

Current EV tax advantages primarily benefit businesses and staff using company cars, and salary sacrifice scheme participants. A 40% tax-paying individual can have an effective cost of 70% more on a personal lease vs. the cost of a business leasing a car due to personal income taxes and low Benefit-in-Kinds on EVs. We believe equalising the effective cost of leasing an EV for personal lease holders will create a fairer cost structure that encourages EV adoption and helps the UK in its net zero ambitions.

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