Policy paper

Income Tax: company car tax rates for 2030 to 2032

This tax information and impact note is about changes to the appropriate percentage used to calculate company car tax for tax years 2030 to 2031 and 2031 to 2032.

• From: HM Revenue & Customs
• Published: 28 October 2026

Documents

Taxation of company cars: the appropriate percentage for tax years 2030 to 2031 and 2031 to 2032

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Details

This measure confirms the appropriate percentage for zero emission and electric vehicles will increase by 1 or 2 percentage points per year in 2030 to 2031 and 2031 to 2032, rising to an appropriate percentage of 12% or 15% in 2031 to 2032.