Finance Bill 2016: Taxation of company cars – diesel supplement

Diesel company cars are taxed at a rate that is 3% above petrol cars. This was due to end on 6th April 2016.

New legislation is to be included within Finance Bill 2016 to extend the additional 3% charge to 2020/21.

This measure will affect employees who have diesel company cars for business and personal use. The measure is now extended so as to run until new EU emissions rules come into effect.