Sarah Bradford looks at recent and forthcoming changes to the taxation of company and employees’ cars, with a focus on electric cars.
In July of this year, the government published their ‘Road to Zero Strategy’, confirming their ambition for at least 50% of new cars to be ultra-low emission cars by 2030. In encouraging drivers to choose ultra-low emission models, the tax system has a role to play, providing incentives for those who choose electric and low emission company cars, while heavily taxing high emission vehicles.
Taxation of company cars: recap
Company cars are taxed on a percentage of their list price when new as adjusted to take account of the price of any optional accessories and capital contributions of up to £5,000. The percentage (the ‘appropriate percentage’) depends on the CO2
