Policy paper

Taxation of company cars using carbon dioxide emissions

This Tax Information and Impact Note is about measuring carbon dioxide (CO2) emissions for company car tax purposes.

• From: HM Revenue & Customs
• Published: 11 March 2020

Documents

Taxable benefits and regime for measuring CO2 emissions

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Details

This measure confirm 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.

Published 11 March 2020