Starting in 2026, UK drivers of widely-used plug-in hybrid electric vehicles (PHEVs) will be subject to new annual fees as announced under the Labour government. This shift comes as part of a push to implement the Euro 6e-bis emissions standard, which is aimed at ensuring more accurate real-world emissions testing. Beginning January 1, 2025, all newly launched PHEVs will be required to adhere to these tougher protocols, while existing models must be re-homologated by the end of 2025. The anticipated changes are expected to significantly increase CO2 emissions figures for many popular PHEV models, potentially doubling current emissions rates and escalating the Benefit-in-Kind (BiK) tax rates for company car drivers. As reported by industry experts, very few PHEVs are likely to meet the new stringent criteria, leading to higher tax burdens for consumers and likely diminishing the appeal of PHEVs for fleet users.
Sat Feb 08 2025 at 9:52