Plug-in hybrid electric vehicles: benefit-in-kind easement

As announced in Budget 2025, the government is introducing a temporary easement to mitigate the increasing benefit-in-kind (BiK) tax liabilities of Plug-in Hybrid Vehicle (PHEV) company cars due to new emission standards.

PHEVs first registered and made available from 1 January 2025 to 5 April 2028, under any emission standard other than Euro 6d-ISC-FCM or Euro 6e, (generally this will mean Euro 6e-BIS-FCM and subsequent emission standards), have a deemed CO2 emission of 1 g/km. This means that the BiK charge will be based on the electric mileage range.

The easement will apply retrospectively from 1 January 2025 to 5 April 2028. Transitional arrangements will apply to certain PHEVs until 5 April 2031.

Download factsheet: Plug-in hybrid electric vehicles (PDF).