Announcement 0% BIK on electric vehicles

Discussion in 'Budget 2018' started by Brendan Burgess, Oct 10, 2017.

  1. Brendan Burgess

    Brendan Burgess Founder

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    35,278
    +€17m for the renewal heat incentive and

    VRT relief of 0%
     
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    35,278
  3. newtothis

    newtothis Frequent Poster

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    427
    Can someone please explain what this actually means? Is the "BIK rate" the rate at which the cash equivalent of the benefit is calculated (i.e. the % of the OMV)?

    Also, what happens in year 2?????
     
  4. Joe_90

    Joe_90 Frequent Poster

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    2,225
    I take it that the standard 30% of OMV is being reduced to 0%.

    On year 2 it goes back to 30% in the absence of new reduced rates for EVs.

    I wonder if I drove in electric mode only would my hybrid qualify?????
     
  5. Jim Stafford

    Jim Stafford Frequent Poster

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    407
    This will prove very attractive to many people, particularly those who own SMEs.

    Given that a new car depreciates considerably once you drive it off the forecourt, it now makes sense to have your company buy a new car.

    Have your company buy the car, pay no BIK for the first 12 months, and then buy it back at its market value 12 months later to avoid future BIK.

    Jim Stafford
     
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