More than 1,200 car derivatives are currently eligible for tax breaks as they are categorised as Alternative Fuel Vehicles. 
 
Mild hybrid cars have now been reclassified as AFVs, following an announcement by the DVLA and HMRC that these vehicles qualify for the same tax discounts as hybrid and plug in hybrid cars. 
 
It was initially ruled that mild hybrid cars would continue to be taxed for both their VED and BIK as a conventional petrol or diesel engine because these vehicles are unlikely to be propelled by electric power alone. There are now several ranges however where the mild hybrid variants are being taxed at the lower rate for alternative fuel vehicles, including non-RDE2 compliant diesel models due to this change. 
 
 
 
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