Treasury has confirmed that only drivers of zero-emission electric cars and vans will benefit from the five-year benefit-in-kind tax holiday from next month.

Drivers of company vehicles fitted with hybrid technology – even plug-in hybrids – will not qualify for the BiK holiday.

However, these drivers will still benefit from a 3% BiK reduction applicable to all hybrid cars until April 2011, when this incentive will be abolished. After that, their cars will be assessed according to their emissions.

From benefit-in-kind to capital allowance to the forthcoming lease accountancy rules, how taxation policies affect fleets and their drivers can be found in the Fleet News Tax section.