Rise in Company Car Tax

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The company car tax rate has increased by 2 per cent for the 2017/18 tax year.

This measure has been taken as an ‘incentive to employers and employees to purchase ultra-low emission company cars’ and to support the UK’s Ultra-Low Emission Vehicle (ULEV) market.

The increase will affect businesses / employers who provide company cars for employees’ private use.

 Emissions of        CO2                  

2016-17

2017-18

2018-19

2019-20

  0 - 50g/km     

7%

9%

13%

16%

51 - 75g/km

11%

13%

16%

18%

76 - 94g/km

15%

17%

19%

21%

95 - 99g/km

16%

18%

20%

23%

100 - 104g/km

17%

19%

21%

24%

105 - 109g/km

18%

20%

22%

25%

110 -114g/km

19%

21%

23%

26%

115 - 119g/km

20%

22%

24%

27%

120 - 124g/km

21%

23%

25%

28%

125 - 129g/km

22%

24%

26%

29%

130 - 134g/km

23%

25%

27%

30%

135 - 139g/km

24%

26%

28%

31%

140 - 144g/km

25%

27%

29%

32%

145 - 149g/km

26%

28%

30%

33%

The 3% point diesel supplement will continue until April 5, 2021, subject to a maximum percentage for diesel cars of 37%.