By GB News (World News) | Created at 2025-01-04 12:46:21 | Updated at 2025-01-06 13:55:17
2 days ago
Drivers have been warned that a certain vehicle type is set to face more stringent emissions testing this year, which could lead to significant increases in company car tax rates.
The new testing regime, which came into effect from January 1 aims to establish more accurate real-world emissions data for plug-in hybrid electric vehicles.
Under current rules, vehicles emitting less than 50g/km of CO2 qualify for benefit-in-kind (BiK) rates of five per cent, eight per cent or 12 per cent, depending on their zero-emission driving range.
However, if a PHEV's CO2 emissions exceed 50g/km under the revised testing system, drivers will face a minimum BiK rate of 15 per cent.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
This change comes as a double blow for PHEV drivers, following modifications to BiK bands already announced in the 2024 October Budget.
Known as Euro 6e-bis, the new emissions standard applies to all newly launched PHEVs from the start of 2025. The regulations will extend to all PHEV models on sale from December 31, Fleet News detailed.
This means manufacturers must re-approve their entire existing PHEV range before the end of 2025 to avoid getting hit with new charges.
The testing process involves measuring CO2 emissions in two modes: when driving with a fully charged battery until depletion, and when driving with an empty battery.
These measurements are then weighted using a utility factor (UF), which is determined by the vehicle's battery-depleting range.
The European Commission adjusted the UF in 2023 as part of Euro 6e regulations, following criticism that previous testing methods didn't accurately reflect real-world usage.
Under the new Euro 6e-bis standard, the utility factor has been increased significantly to 2,220km (1,367 miles).
This marks a substantial change from the Euro 6e standard, which used a UF of 800km (497 miles).
Car tax hikes will be introduced at the start of April
GETTY
To illustrate the impact of these changes, the International Council on Clean Transport (ICCT) analysed the BMW X1 xDrive25e PHEV.
This model can drive approximately 70km (43 miles) in charge-depleting operation.
