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Company Cars: Taxation

Asked by James McMurdockIndependentTreasuryTabled Answered 7 January 2026UIN 101088

The question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to Employee Car Ownership Schemes on the supply of nearly-new vehicles to the second-hand car market.

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 government has published a tax impact and information note, which can be found here:

https://www.gov.uk/government/publications/changes-to-employee-car-ownership-schemes-for-income-tax/changes-to-employee-car-ownership-schemes-ecos

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