Future Company Car Tax Rates

Company Car Tax rates have traditionally been announced around two years in advance, to give certainty over costs to industry (and to software suppliers). Finance Bill 2012 therefore legislated the rates for 2014-15, but the government has also announced proposed changes for 2015-16 and 2016-17. In future years company car tax rates will be announced three years in advance.

The chart on the next page shows the rates right through from the current year to April 2017. The following notes may help to explain some of the movements.

2015-16

From April 2015, the five year exemption for zero carbon and the lower rate for ultra low carbon emission cars will come to an end. Two new bands will be introduced for ultra-low emission vehicles (ULEVs). These will be introduced at 0-50 g/km (5%) and 51-75 g/km (9%).

The remaining appropriate percentages will increase by 2 percentage points for cars emitting more than 75 g/km to a maximum of 37%.

2016-17

The appropriate percentages will increase by 2 percentage points to a maximum of 37%.

New European standards which come into force in September 2015 will require diesel cars to have the same air quality emissions as petrol cars. The 3 percentage point diesel supplement will therefore be removed in April 2016, so that diesel cars will be subject to the same level of tax as petrol cars.

2017-18 and 2018-19

The appropriate percentage will increase by 2% for cars emitting more than 75g/km to a maximum of 37% in each of the years 2017-18 and 2018-19.

Company Car Tax
Tax year 2015-16 2016-17 2017-18 2018-19
CO2 emissions
g/km
Appropriate % of car list price taxed Appropriate % 
Petrol and Diesel
Appropriate % 
Petrol and Diesel
Appropriate % 
Petrol and Diesel
Petrol Diesel
0 - 50 5 8 7 9 11
51 - 75 9 12 11 13 15
76 - 94 13 16 15 17 19
95 - 99 14 17 16 19 21
100 - 104 15 18 17 21 23
105 – 109 16 19 18 23 25
110 – 114 17 20 19 25 27
115 – 119 18 21 20 27 29
120 – 124 19 22 21 29 31
125 – 129 20 23 22 31 33
130 – 134 21 24 23 33 35
135 – 139 22 25 24 35 37
140 – 144 23 26 25 37
145 – 149 24 27 26
150 – 154 25 28 27
155 – 159 26 29 28
160 – 164 27 30 29
165 – 169 28 31 30
170 – 174 29 32 31
175 – 179 30 33 32
180 – 184 31 34 33
185 – 189 32 35 34
190 – 194 33 36 35
195 – 199 34 37 36
200 – 204 35 37
205 – 209 36
210 – 214 37
215 and above

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