Company car tax rises from April 2026 include EVs

Company car tax bands increase across the board including electric vehicles going to 4%, up to maximum 37% for highest emitting vehicles, affecting over 700,000 employees

Heralding a new tax year, there are increases for most vehicle classes in 2026-27. The electric vehicle (EV) rate goes up from 3% to 4%, adding to the tax costs for employees with these company cars. Standard petrol and diesel rates are also increasing by one percentage point each, depending on emissions.

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