Company Cars: Taxation

(asked on 25th February 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent estimate his Department has made of the number of grey fleet vehicles that (a) are in use and (b) will be in use after the introduction of Worldwide Harmonised Light Vehicle Test Procedure for tax purposes in April 2020.


Answered by
Robert Jenrick Portrait
Robert Jenrick
This question was answered on 4th March 2019

As the Worldwide harmonised Light vehicles Test Procedure (WLTP) aims to replicate real-world driving conditions more closely, it is expected that reported CO2 values will increase.

Through the review of WLTP and vehicle taxes, the government has engaged with stakeholders to determine the impact on tax liabilities and the UK’s environmental objectives, including the role of company cars in reducing CO2 emissions from road transport.

The review closed on 17 February and the responses are currently being analysed. The government has committed to publishing a response in the spring.

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