TUSKER, a specialist in providing salary sacrifice cars, has been purchased by Lloyds Banking Group in a deal worth around £300 million.
The acquisition will help Lloyds Banking Group company Lex Autolease provide the car acquisition method to its customers, although Tusker will continue trading as a separate entity.
Salary sacrifice is one of the fastest growing funding methods in the UK. According to the BVRLA, salary sacrifice volumes were up 33% year on year to 35,751 cars (BVRLA Leasing Outlook Report October 2022).
How does salary sacrifice work? An employee forgoes a proportion of their monthly salary in exchange for a brand-new electric vehicle. The sum sacrificed is taken out of the employee’s gross pay, before any PAYE tax and National Insurance is applied, therefore an employee’s taxable salary is reduced which means that they pay less tax. There is some company car tax to pay but this is minimal.
Lloyds Banking Group says Tusker’s focus on the provision of ultra low emission and zero emission vehicles would also assist the Group in attaining its net zero emissions targets by 2050 or sooner.
As part of our 2022 strategy, we outlined our ambitions to grow our participation in vehicle leasing and the acquisition of Tusker is a key part of delivering on this with a net-zero focus, at a time when the transition to sustainable methods of transport is a high priority for both our business clients and retail customers.
Alongside our Lex Autolease business, this acquisition allows Lloyds Banking Group to offer our products and services across a wider section of businesses and enterprises, enabling them to provide competitive benefits packages while helping them transition to net-zero.
Currently over 1 million cars and vans on UK roads are leased or financed through Lex Autolease and its sister finance business Black Horse, including 1 in 10 new electric cars.
The company said that the acquisition of Tusker would support the Group’s ambition to help Britain build a more sustainable society.
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