Company car tax bands

The current company car tax rates apply until 6 April 2020, but after that all of the rates are changing. Find out how much you'll pay...

18 August 2019
Executive cars

Company car tax is designed to encourage business drivers to choose models with lower CO2 emissions, so the amount payable rises on a sliding scale in line with emissions.

Historically, this has contributed to a big increase in the number of diesel cars. However, due to concerns about particulates and NOx, diesels are now subject to a 4% surcharge unless they meet the latest RDE standards, meaning hybrids, electric cars and even petrols can make more financial sense.

To promote ultra low emission vehicles (ULEVs), models that produce less than 50g/km are currently charged at 16% – 3% less than the next cleanest cars. And the good news is electric cars about to get even more tempting.

In July 2019, new rates were announced for company cars registered from 6 April 2020. The new system splits cars into two groups for three years: those registered before 6 April 2020, and those registered on or after that date.

Nissan Leaf charging

Providing a boost for pure electric cars with zero CO2 tailpipe emissions, those registered from 6 April 2020 will have a 0% tax rate for 2020-2021. The tax rate for these vehicles will increase to 1% in 2021-2022 and 2% in 2022-2023.

The 0% tax rate will also apply to cars that produce 1-50g/km of CO2 and have a pure electric range of at least 130 miles, in 2020-2021. It will then rise to 1% in 2021-2022 and 2% in 2022-2023.

Company cars with emissions of from 1-50g/km and a pure electric mile range of 130 miles or more, first registered before 6 April 2020, will attract a 2% tax rate in 2020-2021 and this will stay the same for the two subsequent tax years.

From 2023-2024, fleets will revert to a single company car tax table – regardless of vehicle registration date – with realigned rates.

Company car tax bands from 6 April 2020

Cars registered before 6 April 2020

CO2 emissions g/km Electric range miles % rate 2020-21 % 2021-22 % 2022-23
0 n/a 0 1 2
1-50 >130 2 2 2
1-50 70-129 5 5 5
1-50 40-69 8 8 8
1-50 30-39 12 12 12
1-50 <30 14 14 14
51-54   15 15 15
55-59   16 16 16
60-64   17 17 17
65-69   18 18 18
70-74   19 19 19
75-79   20 20 20
80-84   21 21 21
85-89   22 22 22
90-94   23 23 23
95-99   24 24 24
100-104   25 25 25
105-109   26 26 26
110-114   27 27 27
115-119   28 28 28
120-124   29 29 29
125-129   30 30 30
130-134   31 31 31
135-139   32 32 32
140-144   33 33 33
145-149   34 34 34
150-154   35 35 35
155-159   36 36 36
160 or more   37 37 37

Cars registered from 6 April 2020

CO2 emissions g/km Electric range miles % rate 2020-21 % 2021-22 % 2022-23
0 n/a 0 1 2
1-50 >130 0 1 2
1-50 70-129 3 4 5
1-50 40-69 6 7 8
1-50 30-39 10 11 12
1-50 <30 12 13 14
51-54   13 14 15
55-59   14 15 16
60-64   15 16 17
65-69   16 17 18
70-74   17 18 19
75-79   18 18 20
80-84   19 20 21
85-89   20 21 22
90-94   21 22 23
95-99   22 23 24
100-104   23 24 25
105-109   24 25 26
110-114   25 26 27
115-119   26 27 28
120-124   27 28 29
125-129   28 29 30
130-134   29 30 31
135-139   30 31 32
140-144   31 32 33
145-149   32 33 34
150-154   33 34 35
155-159   34 35 36
160-164   35 36 37
165-169   36 37 37
170 or more   37 37 37

Company car tax bands 2017-2020

Figures for diesel cars with 4% surcharge are shown in brackets.

  • 0-50g/km – 16% (20%)
  • 51-75g/km – 19% (23%)
  • 76-94g/km – 22% (26%)
  • 95-99g/km – 23% (27%)
  • 100-104g/km – 24% (28%)
  • 105-109g/km – 25% (29%)
  • 110-114g/km – 26% (30%)
  • 115-119g/km – 27% (31%)
  • 120-124g/km – 28% (32%)
  • 125-129g/km – 29% (33%)
  • 130-134g/km – 30% (34%)
  • 135-139g/km – 31% (35%)
  • 140-144g/km – 32% (36%)
  • 145-149g/km – 33% (37%)
  • 150-154g/km – 34% (37%)
  • 155-159g/km – 35% (37%)
  • 160-164g/km – 36% (37%)
  • 165 or more – 37% (37%)

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