Company Cars: Taxation
The question
To ask the Chancellor of the Exchequer, whether (a) she or (b) Treasury ministers have met with (a) the Society of Motor Manufacturers and Traders and (b) other members of the automotive sector to discuss the taxation of the employee car ownership scheme.
Answered by James Murray
At Autumn Budget 2024 the government announced plans to close loopholes in the legislation around employee car ownership schemes (ECOS) at a future fiscal event, to prevent them being used by employers to circumvent the employee’s Company Car Tax (CCT) liability and the Employer NICs liability.
Private use of a company car is a valuable benefit to an employee, and it is right that Company Car Tax is paid on it and ensures fairness with other taxpayers.
Ahead of publishing draft legislation, I and my officials have met with the Society of Motor Manufacturers and Traders (SMMT) and my officials have met their members, in line with normal practice
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