IN the Budget the Chancellor announced new emissions bands for company car tax for ultra low emission vehicles and confirmed the 3% diesel levy is coming off the company car tax menu.
These ultra low emission company cars cover the 0g/km, 1-50g/km and 51-75g/km tax bands.
The current 3% additional levy on diesel engined cars is to be scrapped from 2016/17
The market for these vehicles is fragile, especially for use as company cars but with improvements in technology, especially range, in mind the Chancellor is trying to encourage take-up. However, many companies have little confidence in the projections for the costs, especially in terms of residual value, and take up so far, has been low.
The Chancellor also announced that he would be providing support to UK based manufacturers of ultra low emission vehicles through the tax system.
The current 3% additional levy on diesel engined cars is to be scrapped from 2016/17. The government has now committed to publishing changes in the tax bands for up to three years ahead in order that drivers are able to make informed choices for their next company car.
Latest company car tax tables
Click the link for tax tables to 2015/16.