HMRC have published a response to their consultation earlier this year on ‘Company car tax for ultra low emission cars (ULEV)’.
The original consultation was published in August 2016. In their response, HMRC have confirmed that from 2020/21 there will be:
- A new zero-emission band.
- Five new bands based on zero-emission miles for ULEVs below 50g CO2 per km.
- Five bands for ULEVs between 51 and 75 CO2 per km.
- Four bands for ULEVs between 76 and 94 CO2 per km.
Draft legislation was published on 5 December 2016 for inclusion in Finance Bill 2017.
See CO2 emissions: ultra low emission cars from 2019/20
Links
Other guides relating to company cars:
CO2 emissions: appropriate percentages
Car benefits: once a car always a car - or not?
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