Overview
- Leasing advisers are urging fleets to choose shorter, flexible contracts so vehicles roll off before the relief ends and taxes rise.
- The temporary measure applies to PHEVs registered between January 1, 2025 and April 5, 2028, with some users retaining the benefit until April 2031 if they secure access before the cutoff.
- Euro 6e-bis testing can greatly increase official CO2 figures for some PHEVs, pushing them into higher BIK bands according to Department for Transport analysis.
- Without the relief, a typical £40,000 PHEV could face a taxable benefit of £9,600, translating to £1,920 for basic-rate or £3,840 for higher-rate taxpayers each year.
- Experts warn the concession only delays higher bills, with one fleet director describing a looming tax cliff edge as BIK rates rise from 2028/29.