No BIK changes for diesel cars with defeat devices

  • Government says company car drivers will not have to pay more tax
  • Next phase of investigation will see if illegal software is being used elsewhere
  • More than a million Volkswagen cars in the UK are affected

HM Revenue and Customs (HMRC) has confirmed that any customers affected by a potential recall of certain Volkswagen Group diesel vehicles will not have their BiK tax status changed if it comes to light that the emissions of a vehicle have increased.

Transport Secretary Patrick McLoughlin said "Our priority is to protect the public and give them full confidence in diesel tests. The government expects VW to support owners of these vehicles already purchased in the UK and we are playing our part by ensuring no one will end up with higher tax costs as a result of this scandal."

More than a million Volkswagen cars in the UK will need to have work carried out to correct their emissions and the firm has made it clear that technical solutions are being developed and will be presented to responsible authorities before the end of October. The VIN (Vehicle Identification Number) details of affected cars are to be released to retailers shortly and a self-serve process for customers and company car drivers to check if their vehicle is affected will be set up.

The government also announced the next phase of this investigation is due to start, which will look at whether the illegal software used by VW is being used elsewhere and will include laboratory and real world testing by the Vehicle Certification Agency (VCA).

For more advice and guidance, the British Vehicle Rental and Leasing Association (BVRLA) has also updated its fact sheet on vehicle recalls, which confirms members' legal responsibilities.

BVRLA Chief Executive Gerry Keaney said: “Our members and their customers are concerned about the implications for this potentially reaching the UK, and will want to understand what it means for the UK market.

“These investigations have only just begun, so we’re watching closely to see if the scope widens further to include other manufacturers and vehicles. It is difficult to comment any further about potential impacts until we have a better understanding of how governments, manufacturers and customers react.”