HMRC have issued a consultation 'Company car tax for low emission cars' in order to seek views on the design of new ultra-low emission vehicle (ULEVs) bands for company car tax.

In particular HMRC are considering:

  • Whether to introduce further ULEV bands.  At present, there are two: emissions of 0-50 CO2g/km; and 51-75 CO2g/km.
  • how to differentiate between the various ULEVs, i.e. to continue to be based solely on CO2 emissions, or also to be based on the number of ‘zero emission miles’ capable.

The consultation will last until 19 October 2016.


See our other guides relating to company cars:

Company cars

CO2 emissions: appropriate percentages

Car fuel benefit charges

Car benefits: once a car always a car - or not?

Company car online updater

External links:

You can read HMRC's full consultation document here.