Policy paper
Taxable benefits and rules for measuring carbon dioxide emissions
This measure confirms the basis for measuring the carbon dioxide (CO2) emissions figure for company car tax purposes.
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Details
These rules make it clear that all new cars provided to employees and available for private use that are first registered from 6 April 2020 will be taxed according to the CO2 emissions figure, measured under the Worldwide Harmonised Light Vehicle Test Procedure system.
The appropriate percentage for cars tested under the existing New European Driving Cycle procedure for the tax years 2021 to 2022 and 2022 to 2023 will be maintained at the 2020 to 2021 rates.