Tax Charge to Reduce on Hybrid Cars

16 July 2018

The Government has announced plans to reduce the company car tax rates on low emission vehicles from 6 April 2020.

For cars with no CO2 emissions, the current percentage applied to the list price to determine the benefit in kind value, is 13%. This is set to increase to 16% in 2019/20 and then fall to 2% in 2020/21.

For cars with CO2 emissions up to 50g/km, the benefit in kind will be determined by the electric range of the vehicle.

The table below shows the appropriate percentage for the current and next two tax years.

Above 75g CO2/km the appropriate percentage continues to increase by 1% for each increase of 5g CO2/km, to a maximum of 37%.

A further 4% should be added to the appropriate percentage for diesel vehicles, and, where applicable, an additional benefit in kind can apply where fuel is provided.

CO2 emissions (g/km)	Electric range (miles)	2018 / 19 (%)	2019 / 20 (%)	2020 / 21 (%)
0		13	16	2
1-50	130 or more	13	16	2
1-50	70-129	13	16	5
1-50	40-69	13	16	8
1-50	30-39	13	16	12
1-50	0-29	13	16	14
51-54		16	19	15
55-59		16	19	16
60-64		16	19	17
65-69		16	19	18
70-74		16	19	19
75-79		16	19	20

Please note that the low emission vans are subject to the applicable van benefit charge.

If you would like any further information please contact Green & Co on 01633 871122.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.