The era of the executive company car as a status symbol is facing an unprecedented threat. No longer can high-flying executives rely on a plush German saloon to convey their stature – a luxury that was once a perk of office but has become prohibitively expensive under new tax rules. The latest figures demonstrate the scale of the shift: HM Revenue and Customs' Benefit in Kind (BiK) structure, introduced in April 2021, has already resulted in a £1.3 billion annual reduction in company car benefits for executives.
For traditional combustion-engined vehicles, pushing past the 30% BiK band can result in monthly PAYE deductions equivalent to a mortgage payment. Businesses also face an additional 15% charge on the benefit's value through employer National Insurance contributions. Furthermore, the Expensive Car Supplement adds an extra £440 annually to road tax bills for cars priced over £40,000, from the second to the sixth year of ownership. While this supplement also applies to electric vehicles (EVs), the threshold for zero-emission cars has recently been raised to £50,000, offering greater flexibility and a strong incentive to transition away from petrol or diesel.
This shift means that with careful specification, an electric executive car can bypass some of the significant overheads that plague its traditional counterparts. For those who value a car's design and driving dynamics, the move to electrification does not necessarily entail a compromise. The Alpine A390 GT, for example, illustrates how an electric vehicle can combine performance with tax efficiency. Built in Alpine's Dieppe facility, this five-seater fastback, priced at £61,000, features three electric motors delivering 400PS and a 0-62mph time of 4.8 seconds, alongside an official range of 345 miles. Crucially, its pure electric power places it in a BiK bracket of just 4%, offering a compelling blend of an exhilarating driving experience and significant tax benefits.
The A390 GT's engineering also highlights how electric performance can be refined. Its active torque-vectoring system on the rear subframe continuously adjusts torque to each wheel, allowing the car to rotate into corners with remarkable finesse, despite its two-tonne kerb weight. The steering ratio adjusts with speed for precise control, and the ride balances comfort and control through passive monotube dampers and hydraulic bump stops. Inside, the cabin offers a cockpit-like experience with Sabelt bucket seats and two-tone Nappa leather, while a bespoke 13-speaker Devialet audio system compensates for the absence of engine noise with concert-hall clarity.