Policy paper
Income Tax: Increasing the appropriate percentage for company cars
This tax information and impact note is about setting the appropriate percentage for company cars for tax years 2025 to 2026, 2026 to 2027 and 2027 to 2028.
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Details
This measure confirms that the appropriate percentage for zero and ultra-low emission company cars will increase, by 1 percentage point, for each of the tax years 2025 to 2026, 2026 to 2027 and 2027 to 2028.
This measure also confirms the appropriate percentage for cars which produce 75 grams and above of carbon dioxide per kilometre will increase, by 1 percentage point, for the 2025 to 2026 tax year only and will be maintained at that level until 05 April 2028.