KGM Leasing

KGM leasing: begin with the job the SUV must do

KGM’s passenger range spans quite different needs. A compact petrol SUV, a five-seat electric Torres EVX and a seven-seat diesel Rexton should not be treated as adjacent equipment upgrades. Define the ordinary load, number of passengers, any trailer and where the vehicle will replenish energy. Then choose the model whose documented capability answers that brief.

Rexton deserves attention where seven seats or a substantial towing requirement are central. Torres EVX offers a separate electric option with a large published luggage compartment. Actyon introduces another petrol or full-hybrid body comparison, while Tivoli and Korando should remain on the shortlist when a smaller petrol SUV can do the job. The useful result is a specific vehicle requirement rather than a preference for the largest badge.

This page concerns passenger cars. KGM pick-ups and Rexton Commercial have different classifications and must be assessed separately. A familiar name does not establish the same seating, warranty, VAT or benefit treatment. Tell IVF which use you intend so that the correct vehicle and agreement are investigated from the start.

KGM leasing: key facts

1. Torres includes petrol, HEV full-hybrid and EVX battery-electric choices.
2. The UK Torres EVX provides five seats and 703 litres of luggage space seats-up.
3. EVX’s 1,500kg braked towing benchmark differs from passenger Rexton’s 3,500kg and seven-seat proposition.
4. Actyon K50 occurs with petrol and HEV powertrains; its grade does not settle the energy system.
5. GOV.UK: the maximum company-car BiK band is 37% in 2026/27 and 39% in 2029/30; the exact car can fall in a lower band.

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UK range and IVF route checks: 27 September 2026. A live catalogue entry is not confirmation of stock, allocation or a delivery date.

Torres EVX and Rexton: seats and trailer limits

KGM’s UK EVX specification gives five seats and 703 litres of luggage volume with rear seating upright, increasing to 1,662 litres when folded. The smaller measurement is relevant when rear passengers remain aboard. Check the actual opening and floor shape with your bags or equipment, because a high volume does not guarantee that one awkward item can be loaded.

The EVX K30/K40 braked towing benchmark is 1,500kg. Passenger Rexton offers a different seven-seat proposition and a published maximum of 3,500kg, a 2,000kg difference. If the required trailer exceeds the EVX figure, changing its equipment grade cannot solve that mismatch. Investigate an appropriate Rexton passenger derivative and its diesel running costs instead.

Neither headline approves every loaded combination. Confirm the exact year and classification, approved towbar, noseweight, payload and plated vehicle/train weights. People, luggage and towball load all matter. Ask for the figures applying to the actual supplied car and provide the trailer’s real loaded weight. Towing capacity is not extra passenger payload, and a seven-seat layout does not mean seven people and every trailer load can automatically be combined.

Torres and Actyon: write the energy system explicitly

The Torres route combines petrol, HEV and electric EVX entries. A current EVX document cannot establish the warranty or towing capability of a petrol Torres, and a shared body name does not give all versions the same driven wheels. Identify the actual powertrain and UK specification before using technical figures in the comparison.

Actyon K50 is offered in petrol and HEV descriptions. K50 is the grade; HEV identifies a full hybrid that does not need external charging. It does not become a plug-in or zero-emission car for company-car purposes because an electric motor is present. Compare petrol and hybrid on the same passenger and equipment brief, then examine fuel use and certified emissions separately.

Tivoli and Korando listings include petrol manual and automatic choices. If the requirement is an accessible everyday SUV without Rexton’s passenger or towing brief, try these rather than assuming a larger body is essential. The 2.2 diesel Rexton K30, K50 and K51 entries require their own emissions and equipment checks. Reusing a grade name across the range cannot substitute for the complete vehicle description.

KGM business leasing

A business KGM decision often starts with a practical requirement that should survive every quotation: staff seats, equipment load, access or a documented trailer capability. Record that requirement before comparing petrol, HEV, electric or diesel. A shared K50 description cannot establish that an Actyon and a Rexton do the same job, and a passenger-car quotation should not quietly become a commercial-vehicle proposal.

For employee private availability, apply the actual car’s P11D and certification. Torres EVX follows the zero-emission path; Actyon HEV is assessed on its emissions; Rexton diesel needs the relevant diesel rules and certification. The company’s hire, VAT and accounts are separate from the driver’s benefit. Resolve vehicle classification, warranty eligibility and any towing approval in the procurement record so that the accountant and driver are considering the same supplied car.

VAT and the business accounts

VAT-registered businesses can normally reclaim 50% of the VAT on qualifying car rentals where private use is available, depending on circumstances and the normal VAT rules. Full rental-VAT recovery requires exclusive business use with no private availability. Maintenance can fall outside the rental block when it is genuinely optional, separately described in the contract and separately quantified on the invoice; recovery remains subject to normal VAT rules. Read HMRC’s motoring VAT guidance.

Businesses using the VAT Flat Rate Scheme do not normally recover input VAT on recurring car hire. The separate capital-goods exception does not turn hire invoices into a vehicle purchase. Check HMRC’s Flat Rate Scheme guidance.

The hire-cost rules normally disallow 15% of otherwise deductible rentals for cars above 50 g/km, subject to their scope and exceptions. A company-car BiK easement does not establish relief from this restriction. Check HMRC’s car-hire deduction rules.

For accounting periods beginning on or after 1 January 2026, revised FRS 102 generally requires a right-of-use asset and lease liability for lessees, including small companies using Section 1A. FRS 105 lease accounting for eligible micro-entities was not changed in the same way. Contract hire therefore does not universally keep a car off the balance sheet. Ask your accountant to apply the right framework; HMRC summarises the accounting standards.

Personal KGM leasing: family load and leisure use

A private KGM enquiry is most useful when it describes both ordinary and occasional loads. The weekly family trip might need five seats and bags, while holidays introduce a trailer or extra passengers. Explain which requirement is essential and how often it occurs. That helps distinguish a Torres EVX brief from a passenger Rexton rather than comparing them solely on equipment.

If Tivoli, Korando or Actyon fits the normal use, test parking, visibility and rear access before deciding that another SUV is needed. For a trailer, include the actual loaded details and any required fittings. An electric choice also needs reliable charging, especially on longer trips where towing can alter energy use. Personal hire combines the agreement with insurance, fuel or electricity and optional maintenance. It does not create the employee company-car tax calculation shown for privately available business cars.

KGM company-car tax across the lease

These exact Torres electric and Actyon full-hybrid entries illustrate different tax bases. Rexton diesel needs a separate certified assessment, and commercial classifications are outside these passenger-car examples.

For private availability to an employee or director, start with the exact car’s P11D and the appropriate annual percentage, then apply the individual’s income tax rate and relevant adjustments. The hire payment is not the taxable benefit. Sole-trader use follows a different assessment. Compare every tax year crossed by the agreement with your accountant.

These are conditional tax bands, not assigned rates for every KGM. Confirm the supplied car’s P11D, certified CO2, fuel type and registration date. Diesel supplements can apply where the required emissions certification is absent, subject to the annual maximum.

The electric-mile figures above are HMRC band thresholds, not promises of this car’s driving range. Newer plug-in hybrid certification can show more than 50 g/km. A temporary company-car easement may treat an eligible car as 1 g/km where the registration date, electric range and Euro-status conditions are met; it is not automatic and must not be transferred to lease-rental deductions. Check the vehicle documents and HMRC’s plug-in hybrid conditions with your accountant.

Retained tax illustrations from the 10 September 2026 catalogue snapshot: a full year at 40% income tax, without employee contributions or other adjustments. These are dated examples for different cars, not current quotations, employer costs or a claim of overall savings. Obtain current P11D and certification for your supplied vehicle.

Use our company-car BiK guide alongside HMRC’s 2026/27 and 2027/28 tables and the published 2028/29 and 2029/30 changes. Tax information checked 27 September 2026 against the C1 ledger and its primary sources. Tax treatment depends on individual circumstances and may change; consult your accountant.

Ask for the exact KGM vehicle details your accountant needs.

Road tax and costs across the term

Vehicle Excise Duty (VED). For 2026/27, the standard annual VED payment after the first year is £200 before any supplement. First-year VED depends on CO2 and registration rules; zero-emission cars currently have a £10 first-year rate. These cash rates apply to 2026/27 only; later annual VED rates are not confirmed here. Ask how the funder treats tax increases during your agreement.

Expensive Car Supplement. The Expensive Car Supplement is currently £440 a year for five years from the second licence. The list-price threshold is more than £40,000 for petrol, diesel and hybrid cars, or more than £50,000 for qualifying zero-emission cars registered from 1 April 2025. Use the published list price before discounts, including relevant options, and check the registration date. Plug-in hybrids do not receive the electric-car threshold. GOV.UK explains VED and the supplement.

Planned eVED. The government plans Electric Vehicle Excise Duty (eVED) from April 2028, alongside VED: 3p per mile for electric cars and 1.5p per mile for plug-in hybrids. This is proposed for April 2028, subject to legislation and implementation; it is not a charge currently in force. The stated rates are planned starting rates, with CPI uprating proposed from 2029/30 and later cash rates not confirmed. An agreement spanning introduction needs the funder’s written treatment of the charge and later changes. Check the government’s consultation response and final implementation guidance before committing.

KGM energy planning: charging, petrol and diesel

Torres EVX needs a charging plan based on the actual supplied battery, motor, wheels and year. The catalogue’s 73kWh label identifies a vehicle description; it does not establish usable capacity or a dependable distance. Obtain the matching UK range and charging data and account for speed, weather, heating and load. If towing is intended, ordinary unladen range should not be treated as the result for a trailer journey.

Torres HEV and Actyon HEV use full-hybrid systems without external charging. Compare their fuel routine with the relevant petrol alternatives on the trips you make. Passenger Rexton’s diesel proposition should be justified by the capability and use required, with the appropriate emissions and maintenance assessment. An electric-car tax percentage cannot be applied to it because another KGM model is a BEV.

For a company with several drivers, clarify where an EVX will charge and who records electricity expenses. A vehicle that changes overnight location may need a more flexible plan than a director’s car returning to the same driveway. For private use, include the public stops likely on longer journeys instead of assuming every charge happens at home.

KGM warranty: EVX is a separate set of terms

KGM’s UK material gives five years or 100,000 miles for relevant combustion and hybrid passenger models, including the cited Tivoli and Torres Hybrid. Torres EVX has a different vehicle headline: seven years or 90,000 miles under its applicable UK documentation. Confirm the actual registration and policy so that the cover in the proposal belongs to the supplied model.

EVX high-voltage battery cover is separately stated as ten years or 1,000,000 kilometres, whichever comes first, with capacity and eligibility conditions. The published distance is in kilometres. It is neither a driving-range figure nor ten-year protection for every part of the car. The unusual battery headline makes it especially important to read the general vehicle, component and battery scopes separately.

Do not carry passenger EVX terms into Rexton Commercial or a pick-up. Intended use, model and classification must be checked against the correct policy. Identify a suitable UK service location and confirm the schedule, assistance and any actual replacement-car arrangements. Routine services, tyres and return standards sit alongside warranty. Optional maintenance should specify the work and exclusions for the model and mileage you intend, rather than borrowing a package description from another KGM.

Build the quotation around the way you will use it

Tell IVF your annual mileage, regular passengers, essential equipment, charging access where relevant and preferred timing. Ask for the precise model year, derivative, options and registration status to be written into the quotation. The catalogue is a starting point; the offered vehicle and funder terms need confirmation.

Business Contract Hire is taken by the business; Personal Contract Hire is taken by the private individual. Both are subject to status and individual funder criteria. Compare the initial rental, term, mileage, maintenance and applicable fees on the same basis. An initial rental is part of the hire cost, not refundable security or ownership equity.

A manufacturer warranty starts under the supplied car’s warranty terms, normally from first registration. Its time and mileage limits may finish before your lease does. It is separate from optional servicing and tyre cover. Confirm maintenance inclusions, insurance responsibilities, tax provisions and early-termination terms before signing.

At the end of contract hire, return the vehicle; there is no contractual purchase option. Excess mileage, damage beyond the funder’s fair wear and tear standard, missing equipment or other contractual charges may still be payable. Check the return process before choosing your agreement.

Useful next steps

Use business car leasing, Business Contract Hire, Personal Contract Hire, company-car BiK guide, VAT on leasing, request a callback, electric car leasing, Skoda Enyaq, GWM Haval Jolion Pro to narrow your choice or discuss a quotation.

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Intelligent Vehicle Finance is a trading name of XLCR Vehicle Management Ltd. Authorised and regulated by the Financial Conduct Authority, FRN 315268. We are a credit broker, not a lender, and we may receive a commission from lenders for introducing you to them. All vehicle finance is subject to status and individual funder criteria.

Company No. 03923327. The Melville Building, 15 Royal William Yard, Plymouth, PL1 3RP.

Editorial responsibility: Stacey Smith, Brand Director, Intelligent Vehicle Finance.

Last updated: September 2026