Following requests for more clarification from members, the BVRLA has received notification from HM Treasury on the definition of Mild Hybrid Electric Vehicles (MHEVs) for tax purposes. Members should make sure their mild hybrids are being correctly treated.
For Vehicle Excise Duty (VED), the DVLA (Driver and Vehicle Licensing Agency) view is that if manufacturers have provided evidence that a MHEV’s electric motor contributes to the propulsion during the type approval process, such vehicles may qualify for the alternative fuel class.
For Benefit-in-Kind (BiK) purposes, HM Revenue and Customs 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 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.
See the full guidance on the BVRLA website.
If you need more information or have any further questions, contact [email protected].
