Company car tax for ultra-low emission cars

15 August 2016

HM Treasury has published a consultation to seek views on the design of new ultra-low emission vehicle bands in the company car tax system.

The consultation - Company car tax for ultra-low emission cars seeks to explore how best to incentivise the cleanest cars into the next decade, a period during which rapid innovation will deliver significant changes in the way motor vehicles are powered.

Company car tax rates and bands, including for ultra-low emission cars (ULEVs) are already legislated for until 2019-20. This consultation seeks views on the design of bands for ULEVs from 2020-21 onwards.

Responses are welcomed from a wide range of stakeholders including individuals, companies, and representative and professional bodies. In particular, a key issue is how to incentivise the uptake and development of step-change technologies over incremental improvements in existing technologies.

This consultation closes 20 October 2016.