Company Cars: Taxation
The question
To ask the Chancellor of the Exchequer, what consultation her Department has undertaken with vehicle manufacturers and the wider automotive industry on the proposed changes to Employee Car Ownership Schemes, including the number of meetings held since July 2024; and whether the figures used to inform the proposed changes have been independently verified.
Answered by Dan Tomlinson
At Budget 2025, the government announced that, to allow more time for the sector to prepare for and adapt to the proposed changes in treatment to Employee Car Ownership Schemes (ECOS), its implementation will be delayed to 6 April 2030, with transitional arrangements until April 2032. The tax impact and information notice (TIIN) has been updated to reflect the impact of the changes on the automotive industry. You can find the TIIN here:
The government maintains regular engagement with vehicle manufacturers and the wider automotive industry. The costing has been certified by the Office for Budget Responsibility.
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