HMT publishes response to WLTP and vehicle taxes review
Released 10 July 2019
HM Treasury has published a summary of responses to its review of worldwide harmonised light vehicles test procedures (WLTP) and vehicle taxes, which sets out a series of proposals for future changes.
The key decisions taken by the government are as follows:
•for cars first registered from 6 April 2020, most company car tax rates will be reduced by two percentage points in 2020-21 before returning to planned rates over the following two years – increasing by 1 percentage point in 2021-22 and 1 percentage point in 2022-23
•to accelerate the shift to zero emission cars, all zero emission models will pay no company car tax in 2020-21, 1% in 2021-22 before returning to the planned 2% rate in 2022-23
•on Vehicle Excise Duty (VED), a call for evidence will be published later this year seeking views on moving towards a more dynamic system which recognises smaller differences in carbon dioxide (CO2) emissions.