Government to introduce new company car tax bands for low-emission vehicles

Company cars

Autumn Statement 2016: The government is to introduce new, lower bands of company car tax for the lowest-emitting cars.

The announcement was made as part of today’s (23 November 2016) Autumn Statement, with details of the new bands and rates set to be announced in the Finance Bill in December 2016.

The new bands and rates, which are intended to provide stronger incentives for the purchase of ultra low-emitting vehicles (ULEVs), will come into effect for 2020-21.

The tax rates for cars emitting greater than 90g of carbon dioxide per kilometre will rise by one percentage point.