Company car tax consultation

The recent central government activity on Brexit may have meant that many overlooked the December 2018 publication of a Treasury review paper: Review of WLTP and vehicle taxes (tinyurl.com/y83u3vsq). This considers the impact of the worldwide harmonised light vehicles test procedure (WLTP) on vehicle excise duty and – something that is not highlighted in its title – company car tax. This is an important announcement for the car leasing sector employers and employees who have company cars.

A change of basis

For some time an announcement had been promised on the future taxation of company cars and vehicle excise duty and many had expected a statement by the chancellor in his 2018 autumn budget but this was deferred. For those involved in company car taxation the issue was that no guidance had been provided on the tax position after April 2020. This would affect not only those taking...