X5 45e tax benefits

[Marc118]

Hi,
I’m currently in the market for a new car and after considering the Taycan and the Etron GT, I’m now leaning more towards the X5 45e (due to the range in electric not being sufficient).
Does anyone know if the same tax benefits apply for this as a full electric car (specifically claiming back against corporation tax)
Thanks in advance.

[E902717]

No. Also the bik is a lot higher.

[J1990]

I can't answer on the corporation tax element, but assuming you're the director and providing yourself with the X5 as a company car, you'll be paying BIK at 6% for the 45e version, whereas the Taycan (or any other full electric vehicle) you will only be paying 1% BIK.

The 45e does have impressive MPG from the petrol engine even when the battery is depleted, so even though it 'only' has a 50 mile electric range (Real world seems to be 33-46 dependant on weather) it still does impressive MPG considering the lump of metal and 300kg battery that petrol engine is hauling around in a package about as aerodynamic as a brick.

I think range anxiety would get me too much with the Taycan and the current charging infrastructure and so if looking at those I'd naturally take a sideways glance at the Model S and end up giving Elon my money for the time being.

[oop north]

I think with the x5 you would get an 18% pa write down on cost against profits when calculating corporation tax. With a pure EV you (assuming buy brand new) would get 100% in year one. It’s just a timing difference though - the total relief will be the same

I struggle to see how the x5 will get more than about 25mpg running just on petrol - that’s what Harry Metcalfe got on his

[Marc118]

Thanks for the replies.
The range anxiety is what is stopping me from going full electric. I’m not a big fan of Tesla’s, if I was it would be an easy decision.
I often drive from Manchester to London and back so the 250mile of a Taycan just isn’t enough hence the reason why I’m leaning towards the X5 hybrid.
The reviews on it seem really good.

[Heres Johnny]

A pure EV and a hybrid will effectively have the same corp tax benefit over the life of the car in so far as you only get tax relief on the depreciation. An EV you can write it down to 100% in the first year, but then when the company sells the sales price becomes a profit (selling an asset with a book value of £0). In essence the EV just has a cash flow benefit on corp tax

The two main differences are BIK as others have pointed out and if you do a lot of business miles, how much you can claim in fuel costs. The EV is 4p a mile, the X5 is 18p tax free. Depending on your mix of business driving this may start top close the gap on personal tax.

Edited by Heres Johnny on Sunday 21st March 09:10

[Marc118]

Thanks for the explanation. I usually do around 20-25k a year. I’d estimate 12k -15k of that are on long journeys to London and back.
I currently have a 530d which isn’t through my company and I claim the usual 45/25p allowance.
I’d like to think putting it through my business would be the better option with a lower BIK rate.