|Policy status:||In Force|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Taxes|
|Policy Target:||Transport>Passenger, Transport|
|Agency:||Her Majesty's Revenue and Customs|
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