Company cars

  • By Mark Morton
  • 27 September 2019 00:00

Company cars have been subject to a new of significant tax rises over recent years but the Government has published rates well in advance.

Following changes to vehicle emission testing, the Government has decided to:

  • Reduce company car benefit rates by 2% in 2020/21 before returning to planned rates over the following two years, increasing by 1% in 2021/22 and 1% in 2022/23. This applies to company cars first registered from 6 April 2020. There are no changes for cars registered before this date.
  • All zero emission company cars will attract a reduced appropriate percentage of 0% in 2020/21 and 1% in 2021/22, before returning to the planned 2% rate in 2022/23.

The effect of this is as follows:

 

2020/21

Cars registered pre 6.4.20

Cars registered after 5.4.20

CO2 emissions

% of list price taxed

% of list price taxed

0

0

0

1-50

 

 

Electric range - 130 or more

2

0

                            70 - 129

5

3

                             40 - 69

8

6

                             30 - 39

12

10

                             under 30

14

12

51-54

15

13

For every extra 5

+ 1

+ 1

160 and above

37

n/a

170 and above

n/a

37

 

 You may wish to inform clients of the changes before they invest in new vehicles.

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