Car Benefit

In today's Budget the Chancellor announced that:

"the appropriate percentage used to calculate an individual’s company car tax for zero emission vehicles will increase for 2028 to 2029 and 2029 to 2030 by 2 percentage points per year.

The appropriate percentage rates for vehicles which produce 1g to 50g CO2 per kilometre and are also capable of operating on electric power within a certain range will be amended. Vehicles with CO2 emissions of 1g to 50g per kilometre will have appropriate percentages of 18% in 2028 to 2029 and 19% 2029 to 2030.

The appropriate percentages for all other emission bands will increase by 1 percentage points per year in 2028 to 2029 and 2029 to 2030. This will be to a maximum appropriate percentage of 38% for 2028 to 2029 and 39% for 2029 to 2030".?

and

"Rates for electric vehicles will increase gradually, while maintaining a significant differential between electric vehicles and internal combustion engine (ICE) vehicles. Appropriate percentages for hybrid vehicles (with CO2 emissions of 1g to 50g per kilometre) will be increased to align more closely with ICE vehicles, to further focus support towards electric vehicles"