Country:United Kingdom
Year:2002
Policy status:In Force
Date Effective:2002
Policy Type:Economic Instruments>Fiscal/financial incentives>Taxes
Energy Efficiency Policy Targets:Transport, Transport, Vehicle type, Passenger vehicles
Climate Change Policy Targets:Transport, Passenger, Transport
Agency:Her Majesty's Revenue and Customs
URL:http://www.hmrc.gov.uk/cars/employee-guidance.htm
Energy Efficiency Description:

In April 2002, the UK Company Car Tax system was revised so as to be made carbon-based. All company cars first registered after January 1998 are taxed on a percentage of their list price according to CO2 emission bands, measured in grams per kilometre (g/km). The reform was intended to remove the perverse incentive in the existing system to reduce the tax due by driving unnecessary, extra business miles and to provide a significant incentive to company car drivers to choose more fuel-efficient vehicles.

Climate Change Description:

In April 2002, the UK Company Car Tax system was revised so as to be made carbon-based. All company cars first registered after January 1998 are taxed on a percentage of their list price according to CO2 emission bands, measured in grams per kilometre (g/km). The reform was intended to remove the perverse incentive in the existing system to reduce the tax due by driving unnecessary, extra business miles and to provide a significant incentive to company car drivers to choose more fuel-efficient vehicles.

This record supersedes:Company Car Tax Reform

Last modified: Wed, 28 Sep 2016 11:17:12 CEST