Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 July 2026 to Question 16597 on Electric Vehicles: Company Cars, what assessment he has made of recent trends in the second-hand electric vehicle market, including (a) depreciation rates, (b) residual values and (c) the impact of calculating benefit-in-kind tax liabilities using the original P11D list price.

Company cars in the UK are subject to an emissions-based regime; the taxable value of the car is not just based on its list price, but also its CO2 emission level. This provides a generous incentive towards the uptake of electric vehicles and their entry into the second-hand market. Electric company cars play a significant role in supporting the used EV market, as they typically enter the second-hand market at the end of their lease.

As set out in the Answer of 13 July 2026 to Question 16597, the Government considers P11D list prices the fairest and most practical way to calculate benefit-in-kind liabilities for company cars and has no plans to move away from this approach. The Government will keep the second-hand EV market under review and continue to monitor developments closely.