Question to the HM Treasury:

To ask Her Majesty's Government what is their assessment of the impact on the electric car market of company car tax thresholds increasing for the next two years.

To provide certainty of the future tax liability for company car employers and employees, the government aims to announce the company car tax (CCT) rates three years in advance of implementation.

Increases to CCT rates apply to all cars, to ensure revenues remain sustainable, particularly as average carbon dioxide (CO₂) emissions for new cars improve. The CCT rates for the tax years 2018-19 and 2019-20 continue to incentivise the uptake of zero and ultra low emission models.

From 2020/21, the government will be introducing eleven new company car tax bands, including for ultra-low emission vehicles (ULEVs). These changes were announced at Autumn Statement 2016.