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Changes to the Benefit Rates for Zero Emission Cars

September 10, 2019 Benefit Rates for Zero Emission Cars

The government has recently changed the benefit rates for zero emission cars with large “electric only mileage” to make them more appealing as a company car for the 2020/21 tax year onwards.

The appropriate percentage on cars with zero emissions and electric only mileage of over 130 miles (such as the Nissan Leaf or all Tesla Models) are 16% in the current tax year, from 2020/21 this reduces to 0%, increasing to just 1% in 2021/22.

Using a Nissan Leaf as an example, the P11D values for these 3 tax years with fuel and a van with fuel are per the beneath table.  Please note the van benefit value has not been confirmed for each of these years but has historically only changed a small amount year on year.  The figures below are therefore estimated using the existing van benefit values.

Benefit Rates for Zero Emission Cars

Per the above table the most tax efficient option, by some way, for future years is the Nissan Leaf or another vehicle capable of a range in excess of 130 miles.

If you have any questions or would like more information about the benefit rates for zero emission cars please contact the KJG tax team on 0161 832 6221 or email info@kjgllp.com.