HM Treasury has given notification to the BVRLA on the definition of Mild Hybrid Electric Vehicles (MHEVs) for tax purposes.
For Vehicle Excise Duty (VED), the DVLA view is that if manufacturers have provided evidence that a mild hybrid’s the electric motor contributes to the propulsion during the type approval process, such vehicles may qualify for the alternative fuel class.
Where manufacturers have provided this evidence, then Field 23.1 on the Certificate of Conformity (CoC) would typically state:
For Benefit-in-Kind (BiK) purposes HMRC maintains that the diesel supplement is only for cars which are propelled solely by diesel. Therefore, any vehicle where the electric motor contributes to the propulsion of the vehicle is exempt from the supplement.
The Society of Motor Manufacturers & Traders (SMMT) defines Mild Hybrid Electric Vehicles (MHEVs) - sometimes known as hybrid assist vehicles – as vehicles that have a petrol or diesel internal combustion engine equipped with an electric motor that can allow the engine to be turned off as the car is coasting or braking. The motor can also be used to provide assistance to the engine, reducing fuel consumption and CO2 emissions. MHEVs cannot be driven on electricity alone.