BIK taxation rates extended to 2030–31 with minimal rise, boosting salary sacrifice schemes
By Eve
The UK Treasury has extended benefit in kind taxation rates for electric cars through to the 2030 to 2031 tax year, with zero emissions vehicles rising by just one percentage point to 10%. Arval UK's head of sales for large corporate and international, John Peters, said the five year certainty and minimal increase will support ongoing fleet electrification, noting that low employee taxation has driven the widespread switch to electric cars in recent years.
Why it matters
Extended BIK certainty to 2030–31 gives fleet operators and salary sacrifice providers a stable planning horizon for electric vehicle programmes, while the modest rate increase preserves the tax advantage that has underpinned corporate EV adoption and associated charging infrastructure demand.
Source
- Original title
- “BIK taxation to boost salary sacrifice schemes – Arval”
- Published
- 30 October 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
- Tag
- Arval
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