Electric and low emission company cars – changes from 6 April 2020
The benefit in king charge for low and zero emission company cars has increased substantially in recent years. The benefit in kind charge in 2017/18 for cars with 50g/km of CO2 emissions, was calculated at 9% of the cars list price. For 2019/20 this had increased to 16% of list price for the same vehicles.
The tax charge for zero and low emission vehicles is being reduced significantly. For tax year 2020/21, for vehicles having either zero emissions or up to 50g/km of CO2 emissions (provided the zero emission range is in excess of 130 miles) the benefit in kind is being reduced to 2% of list price.
This change, together with other tax breaks for such vehicles, makes it worthwhile now considering having such a vehicle as company cars.