Racing towards tax-efficient cars

Various car parts and accessories, isolated on white background

Ian Tongue looks at the current position for those considering buying a car regarded as tax-efficient by the motor trade.

With the Government recently announcing a ban on the sale of new petrol and diesel cars from 2040, it has naturally raised more interest in electric and ultra-low-emission vehicles.

A visit to the car dealer may leave you confused with the terminology and perhaps the seemingly too-good-to-be-true tax savings.

What is tax-efficient?

There are different scales of tax efficiency, but, on the whole, people generally refer to tax-efficient cars as those attracting the 100% first year allowance – ultra-low-emissions or zero-emission cars.

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