Budget 2015: Lower company car tax rates for Ultra-Low Emission cars announced

Changes to the percentage of list price used to calculate the tax on company cars were announced in Budget 2014, with rates increasing as follows:

Emissions (g CO₂/km) 2016/17

% list price taxed

2017/18 % list price taxed Increase from 2016/17 2018/19

% list price taxed

Increase from 2017/18
0-50 7 9 2% 13 4%
51-75 11 13 2% 16 3%
76-94 15 17 2% 19 2%
95-99 16 18 2% 20 2%
100-104 17 19 2% 21 2%
105-109 18 20 2% 22 2%
 ↓  ↓  ↓  ↓  ↓  ↓
175-179 32 34 2% 36 2%
180-184 33 35 2% 37 2%
185-189 34 36 2% 37 2%
190-194 35 37 2% 37 2%
195-199 36 37 2% 37 2%
200-204 37 37 2% 37 2%

 

The rates rise to a maximum of 37% of list price depending on the emissions of the vehicle in question.

The Chancellor announced that for 2019/20 the rates for Ultra-Low Emission vehicles (those which have emissions of 75g CO₂/km or less) will increase by 2%, which is slower than had been previously announced and that the rates for all other cars will increase by 3% for that year. These changes will be included in future legislation.

The announcement is intended to help the government to meet its target for reducing emissions by incentivising company car providers to focus on lower emission vehicles and to ensure that their fleets are regularly updated to take advantage of continuing improvements in emissions technology.