Retention of aspects of the benefit in kind rules for motor vehicles has prompted an increasing volume of businesses to seek out car finance for electric vehicles, analysis from Bank of Ireland shows.
The analysis, carried out by Stephen Healy, head of the bank’s motor sector in its business banking team, shows that 45 per cent of loans for electric vehicles in the five months to the end of May have been for business customers, with 55 per cent for personal customers.
That compares to 28 per cent of all car loans last year going to business customers with 72 per cent for personal customers.
The increase follows an extension of the 0 per cent benefit-in-kind (BIK) rate for electric vehicles for a period of three years from last October’s budget. A BIK is a non-cash benefit an employer gives to an employee and the retention of the 0 per cent rate effectively means that no taxable benefit arises for an employee where they’re given an electric car or van by their employer.