Budget 2020: The government has confirmed a reduction of most company car tax rates by 2% in 2020/21, applicable to cars first registered from 6 April 2020.
The benefit-in-kind tax rates will return to planned levels over the subsequent years: by 1% in 2021/22, and 1% in 2022/23. Rates will then be frozen until 2024/25.
There will be a new zero percentage rate for pure electric vehicles.
From 6 April 2020, fuel benefit charges and the van benefit charge will increase in line with consumer price index (CPI).
Chancellor Rishi Sunak also announced that the freeze on fuel duties will be retained for the 10th year in a row.
Tynan Barton is a business journalist and has been writing in the employee benefits and HR field for over 15 years. She joined Employee Benefits in 2010 as reporter, and has been features editor since 2011.View full profile
