Policy paper
Changes to Employee Car Ownership Schemes for Income Tax
This measure is about bringing Employee Car Ownership Schemes (ECOS) within the scope of the benefit in kind rules as company cars from 6 April 2030, with transitional arrangements.
Documents
Details
This measure amends the benefit in kind rules so that vehicles provided through ECOS will be deemed as taxable benefits from 6 April 2030.
Transitional arrangements will apply for employees still in schemes established prior to that date. They will be able to use the previous treatment, until either the arrangement changes, is renewed, or until April 2032, whichever happens first.
Updates to this page
Published 26 November 2025