Policy paper

Income Tax — changes to Employee Car Ownership Schemes

This measure is about bringing Employee Car Ownership Schemes within the scope the benefit in kind rules as company cars from 6 October 2026.

• From: HM Revenue & Customs
• Published: 21 July 2025

Documents

Changes to Employee Car Ownership Schemes (ECOS)

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Draft legislation

PDF, 100 KB, 2 pages

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Draft legislation (accessible version)

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Explanatory note

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Details

This measure amends the benefit in kind rules so that vehicles provided through Employee Car Ownership Schemes (ECOS) arrangements will be deemed as taxable benefits when made available on restricted terms, outlined in the legislation.

Published 21 July 2025