Government Response to Review on WLTP

The Government response to its review on WLTP has been announced, confirming changes to company car tax and VED

Tags: Taxation

Government Response to Review on WLTP

The long anticipated Government response to their review on WLTP was announced on 9th July 2019, confirming a number of changes to company car tax and Vehicle Excise Duty (VED) including:

• Benefit in Kind rates will be reduced by 2 percentage points in 2020-21 for all cars emitting less than 170g/km CO2 and registered after 6th April 2020

• They will return to planned rates over the following two years – increasing by 1 percentage point in both 2021-22 and 2022-23

• Cars emitting more than 170g/km CO2 will attract the maximum percentage of 37%

• Benefit in Kind rates will be frozen from April 2020 to April 2023 for all company cars registered before 6th April 2020, with the exception of zero emission cars.

• All zero emission company cars will attract a reduced appropriate percentage of 0% in 2020-21, 1% in 2021-22, before returning to the planned 2% rate in 2022-23

• Existing VED rates will be maintained on introduction of WLTP from April 2020

• A call for evidence will be published later this year seeking views on moving towards a more dynamic approach to VED which recognises smaller changes in CO2 emissions

New Benefit in Kind (BiK) Rates

ULEVs first registered Before 6th April 2020

Petrol & diesel vehicles first registered Before 6th April 2020

ULEVs first registered After 6th April 2020

Petrol & diesel vehicles first registered After 6th April 2020

A more comprehensive review of the impact of this change for both CBS ECOS customers and company car drivers to follow…

Contact Details

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