Autumn Budget 2024: The government has announced plans to close loopholes in company car tax rules by ending contrived car ownership schemes.
In the Autumn Budget 2024, Rachel Reeves, Chancellor of the Exchequer, laid out plans to publish draft legislation around loopholes in car ownership arrangements, whereby an employer or third party sells a car to an employee and then buys it back after short period in order to circumvent company car tax payments. Cars are often sold to an employee through a loan with no repayment terms and negligible interest.
The change will take effect from 6 April 2026.
