Following consultation, the Autumn Statement announced that government will legislate in Finance Bill 2017 for ultra-low emission vehicles (ULEVs) for 2020-21, to focus incentives on the cleanest cars
Eleven new bands have been introduced for ULEV’s below 75 gCO2/km from 2020 to 2021 including a separate zero emission band.
The lowest bands are based on the electric range of the vehicle, how far it can travel in electric mode without recharging the battery or using the combustion engine, as well as the CO2 emissions.
The relevant percentage for company cars emitting greater than 90 gCO2/km will rise by 1%, to a maximum of 37%.
The new bands support the transition to cleaner cars which helps to improve air quality. 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 table below shows the new bands and rates for tax year 2020 to 2021.
CO2 (g/km) | Electric range (miles) | 2020 to 2021 |
0 | 2 | |
1-50 | >130 | 2 |
1-50 | 70-129 | 5 |
1-50 | 40-69 | 8 |
1-50 | 30-39 | 12 |
1-50 | <30 | 14 |
51-54 | 15 | |
55-59 | 16 | |
60-64 | 17 | |
65-69 | 18 | |
70-74 | 19 | |
75-79 | 20 | |
80-84 | 21 | |
85-89 | 22 | |
90-94 | 23 | |
95-99 | 24 | |
100-104 | 25 | |
105-109 | 26 | |
110-114 | 27 | |
115-119 | 28 | |
120-124 | 29 | |
125-129 | 30 | |
130-134 | 31 | |
135-139 | 32 | |
140-144 | 33 | |
145-149 | 34 | |
150-154 | 35 | |
155-159 | 36 | |
160 and above | 37 |
Draft legislation, a summary of responses to the consultation and a TIIN was published on the 5 December.
