Country:United Kingdom
Policy status:In Force
Date Effective:2002
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