No Company Car Tax on Zero Emission Vehicles in 2020/21
Company car tax rates increased in April 2019, as standard. However, the rates are set to fall from 6 April 2020 for cars with CO2 emissions of up to 69g/km.
The Government has announced that in the 2020/21 tax year there will be no benefit in kind on company cars with zero emissions.
Further, no benefit in kind will apply in 2020/21 for cars first registered from 6 April 2020, with emissions up to 50g/km and an electric range of 130 miles or more.
A benefit in kind will apply from 2021/22, but the low rates do present a planning opportunity for business owners.
The tables below show the company car rates the Treasury has announced for years 2020/21 to 2022/23 for vehicles first registered before 6 April 2020, and those first registered from 6 April 2020.
| Cars first registered before 6 April 2020 | Cars first registered from 6 April 2020 | ||||||
| CO2 Emissions (g/km) | Electric range (miles) | Appropriate percentage (%) | Appropriate percentage (%) | ||||
| 20/21 | 21/22 | 22/23 | 20/21 | 21/22 | 22/23 | ||
| 0 | n/a | 0 | 1 | 2 | 0 | 1 | 2 |
| 1-50 | >130 | 2 | 2 | 2 | 0 | 1 | 2 |
| 1-50 | 70-129 | 5 | 5 | 5 | 3 | 4 | 5 |
| 1-50 | 40-69 | 8 | 8 | 8 | 6 | 7 | 8 |
| 1-50 | 30-39 | 12 | 12 | 12 | 10 | 11 | 12 |
| 1-50 | <30 | 14 | 14 | 14 | 12 | 13 | 14 |
| 51-54 | – | 15 | 15 | 15 | 13 | 14 | 15 |
| 55-59 | – | 16 | 16 | 16 | 14 | 15 | 16 |
| 60-64 | – | 17 | 17 | 17 | 15 | 16 | 17 |
| 65-69 | – | 18 | 18 | 18 | 16 | 17 | 18 |
| 70-74 | – | 19 | 19 | 19 | 17 | 18 | 19 |
| 75-79 | – | 20 | 20 | 20 | 18 | 19 | 20 |
| 80-84 | – | 21 | 21 | 21 | 19 | 20 | 21 |
| 85-89 | – | 22 | 22 | 22 | 20 | 21 | 22 |
| 90-94 | – | 23 | 23 | 23 | 21 | 22 | 23 |
| 95-99 | – | 24 | 24 | 24 | 22 | 23 | 24 |
| 100-104 | – | 25 | 25 | 25 | 23 | 24 | 25 |
| 105-109 | – | 26 | 26 | 26 | 24 | 25 | 26 |
| 110-114 | – | 27 | 27 | 27 | 25 | 26 | 27 |
| 115-119 | – | 28 | 28 | 28 | 26 | 27 | 28 |
| 120-124 | – | 29 | 29 | 29 | 27 | 28 | 29 |
| 125-129 | – | 30 | 30 | 30 | 28 | 29 | 30 |
| 130-134 | – | 31 | 31 | 31 | 29 | 30 | 31 |
| 135-139 | – | 32 | 32 | 32 | 30 | 31 | 32 |
| 140-144 | – | 33 | 33 | 33 | 31 | 32 | 33 |
| 145-149 | – | 34 | 34 | 34 | 32 | 33 | 34 |
| 150-154 | – | 35 | 35 | 35 | 33 | 34 | 35 |
| 155-159 | – | 36 | 36 | 36 | 34 | 35 | 36 |
| 160-164 | – | 37 | 37 | 37 | 35 | 36 | 37 |
| 165-169 | – | 37 | 37 | 37 | 36 | 37 | 37 |
| 170+ | – | 37 | 37 | 37 | 37 | 37 | 37 |
For certain diesel vehicles a further 4% must be added to the appropriate percentages to arrive at the employment benefit value.
It’s expected that we will have one table from 2023/24 when the rates are aligned.
If you would like any further information, please contact us on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
