The company car tax rates and bands, including ULEVs are already legislated up until 2020, after the government committed to announcing rates three years in advance. The current consultation seeks views on the reform of the bands moving forward.

The government will consider all responses before finalising the reform and publishing the new bands in the autumn.

The consultation will not provide possible future tax rates but focuses on the structure of the company car tax system for ULEVs and whether it is effective to encourage other companies to adopt a ULEV as their company car of choice.

The consultation asks whether CO2 emissions should be used as the only basis for the new ULEV bands or if not what additional factor should the new bands be based upon.

At Budget 2016, the government announced that beyond 2020-21 the main factor to determine company car tax rates would continue to be CO2 emissions. The information is readily available and well understood by consumers and it represents a fair and simple structure to incentivise cleaner car choices.

From 2015 the government introduced two ULEV bands: a band for the cleanest ULEVs with emissions between 0 and 50 gCO2/km and a higher band between 51 and 75 gCO2/km.

The government has the goal that by 2050 almost all cars and vans in the UK should be zero emission.

An ultra-low emission vehicle emits extremely low levels of carbon dioxide (CO2) compared to conventional vehicles fuelled by petrol or diesel.

The consultation closes 19 October 2016 and responses should be sent to [email protected]

The consultation on company car tax for ultralow emission cars is here.