No Company Car Tax on Zero Emission Vehicles in 2020/21

05 August 2019

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 2020Cars first registered from 6 April 2020
CO2 Emissions (g/km)Electric range (miles)Appropriate percentage (%)Appropriate percentage (%)
20/2121/2222/2320/2121/2222/23
0n/a012012
1-50>130222012
1-5070-129555345
1-5040-69888678
1-5030-39121212101112
1-50<30141414121314
51-54151515131415
55-59161616141516
60-64171717151617
65-69181818161718
70-74191919171819
75-79202020181920
80-84212121192021
85-89222222202122
90-94232323212223
95-99242424222324
100-104252525232425
105-109262626242526
110-114272727252627
115-119282828262728
120-124292929272829
125-129303030282930
130-134313131293031
135-139323232303132
140-144333333313233
145-149343434323334
150-154353535333435
155-159363636343536
160-164373737353637
165-169373737363737
170+373737373737

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.

Company Car Tax on Low Emission Vehicles

Submit a Comment

Related articles

Company Cars

Landmark case highlights the rules around commercial vehicles

16 February 2021

Company Cars

Advisory Fuel Rates

01 September 2020

Company Cars

Advisory Fuel Rates from 1st December 2019

30 November 2019

Follow our blog via email

Enter your email address to follow this blog and receive notifications of new posts by email.