The Government is pushing for taxi drivers to opt for zero emission vehicles, as £1,550 tax exemption originally planned to come into place in 2019 is brought forward to April 2018.
This is good news for cab drivers wishing to switch to Green, as the only new vehicle currently on offer is the LEVC Electric TX, which would have been liable for the luxury car tax introduced last year.
What is the luxury car tax?
In the 2017 budget, chancellor Philip Hammond announced a number of changes to car taxes. In particular, he introduced a £310/year surcharge on vehicle excise duty for the first five years, for vehicles over £40,000. Though he did confirm in the last Budget, in November 2017, that taxi drivers would be exempt, but only from April 2019.
This didn’t sound very logical, as the law states that all new taxis had to be zero emissions from January 2018. And this was particularly poor timing as LEVC introduced their new TX, ready for the 1st January 2018…
A change of opinion welcome by the Trade, the City of London… and LEVC
Thankfully for the Trade, in this instance, the Government revised their position and brought the exemption forward.
LTDA General Secretary Steve McNamara welcomed the move: “The government has finally listened to us and cabbies now won’t be paying the luxury car tax. It was stopping the trade from switching to the cleaner, greener taxi, and this decision will save cabbies £1,500, helping us lead the charge in cleaning up London’s polluted air.”
Mayor of London Sadiq Khan also expressed his satisfaction, and reiterated the need for the Government to allow the city to install more charging points: “To truly transform London’s taxi fleet we also need to ensure we have the right rapid-charging infrastructure in place.”
LEVC, who are now the only manufacturer offering a taxi vehicle that is approved for use by TfL, were also understandably relieved by the move, as the luxury vehicle tax would have added an unwelcome expense in a price sensitive market. They stated that they would compensate drivers who had already purchased a TX or were expecting delivery of theirs before April 2018.
Be one of the first to test drive in the all new TX electric taxi
You’ve probably heard all about the ground-breaking technology of the new TX, now come and drive the world’s first electric black cab! Get behind the wheel during a 50-minute driving route and experience the revolutionary new electric taxi for yourself.
To book your own dedicated test drive, simply click here. For further enquiries and information, contact your nearest LEVC dealer on 02477 712 089.
For more information on the cost of insurance for the new LEVC TX, please visit our Electric Black Cab Insurance page.