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In recent announcements, the UK government outlined changes to vehicle excise duty (VED) for electric cars, slated to commence from April 2025. Despite upcoming adjustments, electric vehicles (EVs) continue to play a crucial role in advancing sustainable driving practices. Presently, there exist several tax incentives tailored for drivers in Scotland. Let's delve into these benefits in detail.
Switching to electric not only supports environmental stewardship but also presents substantial financial advantages, particularly pertinent in today's economic climate. Below, we highlight the various tax exemptions and incentives that make owning an electric Mercedes-Benz a prudent choice in Scotland.
Most drivers are familiar with the diverse taxes imposed on vehicles, aimed at promoting lower emissions and encouraging the use of eco-friendly transportation options. Fully electric vehicles epitomise emission-free driving and qualify for exemptions from several taxes and charges:
Electric vehicles currently benefit from a complete exemption from Vehicle Excise Duty (VED), commonly referred to as road tax. This exemption remains applicable until April 2025, presenting significant savings for buyers of electric Mercedes-Benz models such as the EQA and EQS. Additionally, since April 2020, EVs are exempt from the surcharge applicable to vehicles priced over £40,000 registered after April 1, 2017.
Electric vehicles currently enjoy exemptions from congestion charges in major cities like London, Birmingham, and Oxford, where Clean Air Zones (CAZs) are enforced. This exemption represents substantial savings for company car fleets operating within these urban areas. Notably, the congestion charge exemption for electric vehicles in London continues until 2025, highlighting the immediate benefits of transitioning to electric vehicles now.
Businesses investing in electric vehicles benefit from 100% first-year capital allowances, enabling them to deduct the entire cost of the vehicle from taxable profits. This incentive underscores electric vehicles as a strategic choice for company car fleets, aligning with Scotland's commitment to reducing carbon emissions.
Electric vehicles offer cost savings in charging compared to traditional petrol or diesel models. Companies with electric fleets avoid fuel duty, contributing to overall reduced operational costs. Similarly, individuals benefit from lower running expenses and improved fuel economy with electric vehicles.
Employers installing EV chargers at workplaces may qualify for a benefit-in-kind tax exemption, provided they meet specific criteria. This initiative supports businesses in providing convenient and sustainable transportation options for their employees.
The tax benefits of electric vehicles present compelling reasons for both private and company car drivers in Scotland to consider making the switch. For those interested in embracing sustainable driving practices while enjoying relief from traditional car taxes, explore our lineup of fully electric Mercedes-Benz models, including the EQB and EQE. Step into the future with Mercedes-Benz and experience the innovation and efficiency of electric mobility.
Ready to explore your options? Visit our showroom today to discover the benefits of driving a Mercedes-Benz electric vehicle in Scotland and beyond.
Calls may be monitored for quality and training purposes. Eastern Western Motor Group Ltd is authorised and regulated by the Financial Conduct Authority for credit broking and insurance distribution activities under reference number 310505 – we are a credit broker not a lender. Registered Office: 8 Westerton Road, East Mains Industrial Estate, Broxburn West Lothian EH52 5AU Registered in Scotland No. 14833 VAT Registration No. 269233051 We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers.