The government is consulting until 19 October 2016 on the design of new company car taxation bands for ultra-low emission vehicles (ULEVs) from 2020/21 onwards. Company car tax rates and bands, including for ULEVs, are already legislated for until 2019/20. The ultra-low emission vehicle (ULEV) category is defined by vehicles which emit extremely low levels of CO2 due to partial or full electrification.
There are currently two ULEV bands in the company car tax regime, one for emissions between 0 and 50 gCO2/km, and a higher band for cars with emissions between 51 and 75 gCO2/km.
The consultation suggests two broad alternatives for a new banding structure:
· a more continuous approach similar to the current system for higher emission bands, creating a large number of narrow bands, which taper gently between 0 to 75 gCO2/km; or
· smaller numbers of wider emission bands similar to the current ULEV bands thereby creating ‘cliff edges’.
The government is consulting until 19 October 2016 on the design of new company car taxation bands for ultra-low emission vehicles (ULEVs) from 2020/21 onwards. Company car tax rates and bands, including for ULEVs, are already legislated for until 2019/20. The ultra-low emission vehicle (ULEV) category is defined by vehicles which emit extremely low levels of CO2 due to partial or full electrification.
There are currently two ULEV bands in the company car tax regime, one for emissions between 0 and 50 gCO2/km, and a higher band for cars with emissions between 51 and 75 gCO2/km.
The consultation suggests two broad alternatives for a new banding structure:
· a more continuous approach similar to the current system for higher emission bands, creating a large number of narrow bands, which taper gently between 0 to 75 gCO2/km; or
· smaller numbers of wider emission bands similar to the current ULEV bands thereby creating ‘cliff edges’.
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