Low CO2 emissions company cars
Company Car Tax for zero emission cars went from 0% to 5% from April 2015
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Low CO2 emissions company cars
Company Car Tax or CCT for zero emission went from 0% to 5% from April 2015

RUNNING a green company car?

Worried what tax you’re going to pay?

Well, Company Car Taxation or CCT, for zero emission vehicles has been at 0% but that changed in April 2015.

From the 2015 tax year 2018, this will change when a 5% benefit in kind company car tax banding will be applied.

Ultra Low Emission Vehicles (ULEVs) have two bands:

  • 1-50g/km
  • 51g/km-75g/km

Rates for the 1-50g/km are 5% and 8% (for diesel cars) in 2015/16; and for those ULEVs in the 51g/km-75g/km CO2 range the company car tax bandings are 9% and 12% (diesels).

We have our own company car tax tables which you can use to find the rates for zero emission vehicles and those ultra-low emission CO2 vehicles, such as plug-in hybrids and range extenders.

Alternatively, use our company car tax calculator to find out the specific company car tax you will pay on your chosen electric car or ULEV.

For company cars which are fuel-electric hybrids or all-electric and have a rechargeable battery, the list price of the vehicle must always include the cost of the battery and whether or not it is leased separately.

If an employer leases a battery for an employee’s company car, there is a taxable benefit, which would normally be based on the cost of the vehicle.

Benefit in Kind (BIK) paid by an employee is calculated based on the list price of the car and the car’s CO2 emissions.

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