Company Cars: Taxation
The question
To ask the Chancellor of the Exchequer, whether her Department has met with representatives of the automotive industry, including manufacturers and dealership groups, to discuss the potential consequences of treating Employee Car Ownership Scheme vehicles as full company-car benefits for tax purposes.
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 maintains regular engagement with vehicle manufacturers and the wider automotive industry. The changes announced at Budget 2025 have been welcomed by the sector.
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