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

Follow our blog via email

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