Company car tax up 2% for high emission vehicles

From 2018/19 company car tax is up 2% for cars which emit 180-184 CO2 g/km and up 1% for vehicles which emit 185-189 CO2 g/km, with HMRC updating its tax rate table to include a separate row for electric cars which release zero CO2 emissions despite leaving out the tax rates for 2020-2021

Zero emission electric cars have now been given their own tax band although they are still charged at the same amount as cars who emit 1-50 g/km in CO2 emissions.

From 2018-19 all cars who emit 180 CO2 g/km and over will have to pay the equivalent of 37% of the list price of the car in tax. This is up 2% from 2016/17 for cars which fall into the 180-184 emissions band and up 1% for cars in the 185-189 band.

In its updated table HMRC has not yet included the 2020-21 tax rates.

HMRC has also included the 4% diesel supplement charge for diesel vehicles that are not certified to the Real Driving Emissions 2 (RDE2) standard.

From 2018 the diesel supplement charge increases by 1% for all diesel cars which are not conforming to the new RDE2 standard. Cars that do meet the standards will have the supplement scrapped.

Company car tax rates from 2018 to 2020 are as follows:

 

2018/19 2019/20 
CO2 g/km% of list price taxed CO2 g/km% of list price taxed 
Electric (0)13Electric (0)16
1-50131-5016
51-751651-75 19
76-941976-94 22
95-992095-99 23
100-10421100-104 24
105-10922105-109 25
110-11423110-114 26
115-11924115-119 27
120-12425120-124 28
125-12926125-129 29
130-13427130-134 30
135-13928135-139 31
140-14429140-144 32
145-14930145-149 33
150-15431150-154 34
155-15932155-159 35
160-16433160-164 36
165-16934165-16937
170-17435170-17437
175-17936175-17937
180-18437180-18437
185-18937185-18937
190-19437190-19437
195-19937195-19937
200-20437200-20437
205-20937205-20937
210-21437210-21437
215 or more37215 or more37

 

The 2020-21 company car tax rates were announced at Autumn Budget 2017. These tax rates follow a different format with 1-50 tax band split by zero emission miles which each have their own rate.

The 2020-21 tax rates are here:

CO2 g/km

% of list price taxed

Electric (0)

2

1-50 (split by zero emission miles)

>130 - 2
70-129 - 5
40-69 - 8
30-39 - 12
<30 - 14

51-54

15

55-59

16

60-64

17

65-69

18

70-74

19

75-79

20

80-84

21

85-89

22

90-94

23

95-99

24

100-104

25

105-109

26

110-114

27

115-119

28

120-124

29

125-129

30

130-134

31

135-139

32

140-144

33

145-149

34

150-154

35

155-159

36

160 or more

37

Report by Amy Austin

Amy Austin |Reporter, Accountancy Daily [2016-2019]

Amy Austin was reporter, Accountancy Daily and Accountancy magazine, published by ...

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