Hybrid Car Leasing
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- FCA authorised, FRN 315268
- BVRLA leasing broker member
- Part of Global Vehicle Group
Browse hybrid car lease offers below. If you want plug-in hybrid (PHEV) only, tell us and we’ll filter the options.
141 models
Last updated: September 2026. Written by Stacey Smith, Brand Director, Intelligent Vehicle Finance.
Hybrid car leasing: which kind of hybrid suits you?
"Hybrid" covers three quite different cars. A mild hybrid uses a small battery to help the petrol or diesel engine and cannot drive on electric power alone. A full hybrid (often sold as "self-charging") can drive short distances on electric power at low speed and charges itself from the engine and braking. A plug-in hybrid (PHEV) has a larger battery you charge from a socket, with an official electric range typically between about 25 and 75 miles, and some newer models go further. Which one makes sense depends on your journeys, whether you can charge, and, for a company car, the tax.
| Mild hybrid | Full hybrid | Plug-in hybrid (PHEV) | |
|---|---|---|---|
| Needs charging | No | No | Yes, to get the benefit |
| Electric-only driving | None | Short, low-speed stretches | Most local trips if charged, within the official range |
| Typical CO2 band | Above 50g/km | Above 50g/km | 1 to 50g/km |
| Company car tax (BIK) 2026/27 | Set by CO2 band, usually well above a PHEV | Set by CO2 band | 4% to 16% by electric range |
| Best for | Mixed and longer driving, no home charging | Town and suburban driving, no home charging | Company car drivers and anyone who can charge at home or work |
Hybrid company cars: the tax picture to April 2030
Company car tax (Benefit in Kind) is the car's P11D value multiplied by an HMRC percentage set by its CO2 emissions, then by your income tax rate. Plug-in hybrids from 1 to 50g/km are banded by their official electric range: for 2026/27 the percentage runs from 4% for 130 miles or more down to 16% for under 30 miles, and for 2027/28 from 5% to 17%. From 6 April 2028 every car from 1 to 50g/km moves to a flat 18%, and 19% from April 2029, whatever its electric range.
Full and mild hybrids usually sit above 50g/km, so they are taxed on their CO2 band like any petrol car: for example 26% for 100 to 104g/km in 2026/27. For most company car drivers a plug-in hybrid is the lower-tax hybrid until April 2028, and a fully electric car is lower still at 4% for 2026/27 and 5% for 2027/28. If a lease you sign now runs past April 2028, plan on the 18% rate. Our company car tax guide has the full table and worked examples, and our note on the 2028 plug-in hybrid change explains who it affects.
For the business, Business Contract Hire rentals on cars from 1 to 50g/km are fully deductible against profits, while cars above 50g/km have 15% of the rental disallowed. A VAT-registered business can normally reclaim 50% of the VAT on the rentals where the car is available for private use, whatever the powertrain; see our VAT guide. Your accountant should confirm the treatment for your business.
Not sure which kind of hybrid fits?
Tell us your mileage, where you can charge and how long you want the car. We compare hybrid and plug-in options across our funder panel and come back with written choices.
Making a plug-in hybrid work in real life
- Charge it. A plug-in hybrid that is rarely charged runs as a heavy petrol car. If you cannot charge at home or work, a full hybrid or a fully electric car may suit you better.
- Check the official electric range for the exact version, not the model family. It sets the 2026/27 and 2027/28 tax band, and real-world range is usually lower in winter and at motorway speed.
- Business mileage in a company PHEV is reimbursed at HMRC's petrol or diesel advisory fuel rates; hybrids do not use the advisory electricity rate.
- Road tax: hybrids pay the standard annual rate after the first year, plus the expensive car supplement for five years if the list price is over £40,000.
- Look at the lease term against April 2028. A three or four-year lease that starts now crosses the flat 18% change, so compare a PHEV with a fully electric alternative on the whole term.
Hybrid models we arrange most often
Every model below can be supplied on business or personal contract hire, subject to status and availability. Each page sets out the powertrains, the electric range where it applies and the tax position for that car.
- Range Rover Sport: plug-in hybrid alongside mild-hybrid petrol and diesel.
- Volvo XC90: seven-seat plug-in hybrid.
- Volvo XC60: plug-in and mild hybrid.
- BMW X5: the xDrive50e plug-in hybrid.
- Mercedes-Benz GLC: plug-in hybrid SUV and coupe.
- Audi Q5: hybrid and plug-in options.
- Porsche Cayenne: E-Hybrid.
- BMW 3 Series: plug-in hybrid saloon and Touring.
- Cupra Formentor: e-HYBRID.
- Toyota C-HR: full hybrid and plug-in hybrid.
- Kia Sportage: hybrid and plug-in hybrid.
- Hyundai Tucson: hybrid and plug-in hybrid.
- BYD Seal 6: DM-i plug-in hybrid.
Weighing a hybrid against an electric car? See electric car leasing, or compare business contract hire and personal contract hire.
Hybrid car leasing questions
Is it worth leasing a hybrid car?
It depends on how you drive and whether you can charge. A full hybrid suits town and suburban driving without charging. A plug-in hybrid suits drivers who can charge at home or work and do mostly shorter trips, and it has much lower company car tax than a full hybrid until April 2028. For long motorway mileage a mild hybrid or an efficient petrol or diesel can make more sense.
What is the difference between a hybrid and a plug-in hybrid?
A full or mild hybrid charges its small battery from the engine and braking and cannot be plugged in. A plug-in hybrid has a larger battery charged from a socket, with an official electric range typically between about 25 and 75 miles (some newer models go further), so it can do many local journeys on electric power.
How much company car tax is there on a plug-in hybrid in 2026/27?
Plug-in hybrids from 1 to 50g/km CO2 are taxed at 4% to 16% of P11D value in 2026/27, depending on the official electric range: 4% for 130 miles or more, 7% for 70 to 129, 10% for 40 to 69, 14% for 30 to 39 and 16% under 30 miles. The rates rise by one point in 2027/28.
What happens to plug-in hybrid company car tax in April 2028?
From 6 April 2028 every car from 1 to 50g/km is taxed at a flat 18%, whatever its electric range, rising to 19% from April 2029. A lease that starts now and runs past April 2028 should be planned on those rates.
Can a business reclaim VAT on a leased hybrid?
A VAT-registered business can normally reclaim 50% of the VAT on car lease rentals where the car is available for private use. The rule is the same for hybrid, electric and petrol cars. VAT on a separately identified maintenance charge can normally be reclaimed in full.
Are hybrid lease rentals fully tax deductible for a company?
Business Contract Hire rentals on cars from 1 to 50g/km, which covers most plug-in hybrids, are fully deductible against profits. For cars above 50g/km, including most full and mild hybrids, 15% of the rental is disallowed.
Do I need a home charger for a plug-in hybrid?
It is strongly advisable. A plug-in hybrid only delivers its low running costs and electric driving when it is charged regularly. Workplace charging also works. Without regular charging, a full hybrid is usually the better choice.
How are business miles in a hybrid company car reimbursed?
HMRC treats hybrids as petrol or diesel cars for advisory fuel rates, so business mileage in a hybrid company car is reimbursed at the petrol or diesel rate for its engine size. The advisory electricity rate applies to fully electric cars only.
How do I start a hybrid lease with Intelligent Vehicle Finance?
Call us on 01752 429950 or request a callback. Tell us the car or type of car, your annual mileage, where you can charge and the term you want. We compare options from our funder panel and send written quotes. Finance is subject to status, and we are a credit broker, not a lender.
Intelligent Vehicle Finance is a credit broker, not a lender, and receives a commission from the lender or funder when an agreement completes. A trading style of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority, FRN 315268. Tax information is based on HMRC and GOV.UK guidance for 2026/27 to 2029/30, checked September 2026; your own position depends on your circumstances.