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Taxation: Company Cars

Question for HM Treasury

UIN 49809, tabled on 21 October 2016

To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of taxation rules applied to company cars on incentivising the take-up of low and ultra-low emission vehicles.

Answered on

26 October 2016

The Government has recently consulted on proposals to limit the range of benefits in kind, such as company cars, that attract income tax and National Insurance Contributions advantages when they are provided as part of salary sacrifice arrangements. Responses have been received from a wide range of interested parties and the Government’s response will be published in due course.

The Government is committed to encouraging company car drivers to take-up the driving of ultra-low emissions vehicles. A separate consultation published on 10 August sets out proposals to incentivise the take up of low and ultra-low emissions company cars.

Answered by

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