This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

What’s new? Company car changes from April 2021

By Sarah Bradford, March 2021

Sarah Bradford looks at some changes to the company car tax rules taking effect from 6 April 2021. 

Various changes to the company car tax rules came into effect from 6 April 2020, including a new way of measuring carbon dioxide (CO2) emissions and changes to the taxation of low emission cars. One year on, there are further tweaks affecting the 2021/22 tax year. 

Recap: how company cars are taxed 

A tax charge arises under the benefit-in-kind rules when an employee is provided with a company car which is available for his or her private use. The taxable value of the benefit (known as the ‘cash equivalent’ value) is a percentage (known as the ‘appropriate percentage’) of the list price of the car and any optional accessories, as reduced for any capital contributions (capped at £5,000).

This is one of our 2006 Premium articles

To see this article in full and unlock access to our complete library of 2006 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!