Company Cars: Taxation
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of the proposed changes to the Employee Car Ownership Scheme on the UK car industry.
Answered by Dan Tomlinson
At Autumn Budget 2024, the government assessed the expected impact of the proposed changes to Employee Car Ownership Schemes (ECOS) on the 1,900 medium and large companies within the motor manufacture and motor dealership industries.
That analysis suggested that while there may be changes in consumer behavior in response to the proposed changes to the ECOS, including a possible shift towards used vehicles, the overall impact on new car registrations and associated tax revenues was expected to be limited.
The costing and the tax impact and information note will be updated at a future fiscal event to reflect the six-month delay to the originally announced implementation date.
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