From 1 July 2013, Transport for London is introducing a new 100% Ultra Low Emission Discount (ULED) for the London Congestion Charge, with a stricter emissions threshold of 75g/km of CO2 or lower.

Although this will replace the existing Greener Vehicle Discount (GVD) currently available to cars emitting 100g/km CO2 or under, TfL has now agreed that cars registered for the GVD before July will continue to enjoy the 100% discount for a further three years, a year longer than previously intended.

TfL has said it will extend the lifespan of its 100% Greener Vehicle Discount (GVD) until 24th June 2016, meaning that a customer driving a qualifying car on a typical lease contract can enjoy the discount throughout their agreement.

The ULED being introduced in July will replace the existing GVD and Electric Vehicle Discount, providing a single 100% Congestion Charge rebate for electric cars and vans and those emitting 75g/km of CO2 or less.

‘We applaud TfL's pragmatic approach to Congestion Charge discounts’, said BVRLA legal and policy director, Jay Parmar.

‘There aren't many sub-75g/km vehicles out there, so extending the life of the previous GVD, which is available for sub-100g/km cars, will give fleets a more realistic opportunity to choose greener, Congestion Charge-free models.’

He added: ‘However, we are disappointed that TfL has not listened to our calls to support the used market for sub-100g/km cars by allowing them to be sold to the second buyer with the discount.’