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Company Cars: Taxation

Question for Treasury

UIN 226551, tabled on 27 February 2019

To ask the Chancellor of the Exchequer, what steps he is taking to tackle the financial effect of the introduction of the Worldwide Harmonised Light Vehicle Test Procedure on company car drivers.

Answered on

6 March 2019

As the Worldwide harmonised Light vehicles Test Procedure (WLTP) aims to replicate real-world driving conditions more closely, it is expected that reported CO2 values will increase.

Through the review of WLTP and vehicle taxes, the government has engaged with stakeholders to determine the impact on tax liabilities and the UK’s environmental objectives.

The review closed on 17 February and the responses are currently being analysed. The government has committed to publishing a response in the spring.

Answered by

Treasury