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Motor Vehicles: Car Allowances

Asked by Shivani RajaConservativeTreasuryTabled Answered 13 July 2026UIN 16635

The question

To ask the Chancellor of the Exchequer, whether HM Treasury has considered calculating benefit-in-kind tax on used company vehicles by reference to their market value rather than their original P11D list price.

Answered by Dan Tomlinson

The Government considers P11D list prices the fairest and most practical way to calculate benefit-in-kind liabilities for company cars and has no plans to move away from this approach. However, the Government will keep the second-hand EV market under review and continue to monitor developments closely.

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