Company Car Tax
The company car taxable benefit in kind rates will increase once again from 6 April 2028. These increases are in addition to previously announced changes coming into effect between now and 5 April 2028.
- The rate charged in respect of electric and zero emission vehicles will increase to 7% in 2028/29 and 9% in 2029/30;
- Cars with emissions of 1-50g/km will increase to 18% in 2028/29 and 19% in 2029/30; and
- The rates charged for all other emission bands will increase by 1% per year.
The maximum benefit rate currently charged is 37% and this will increase to 38% in 2028/29 and 39% in 2029/30 for the highest emissions cars.
Vehicle Excise Duty
Starting in the 2025/26 tax year, the Vehicle Excise Duty standard rate charge will apply to zero emission cars.
The standard rate charge for all cars first registered on or after 1 April 2017, including those with zero emissions, is £190 for 2024/25 and will increase to £195 for the 2025/26 tax year. For cars registered before 1 April 2017 the standard rate depends upon emissions.
The lowest First Year Rate (FYR) paid for newly registered zero emissions cars will be frozen at £10 from 2025/26 until 2029/30.
For 2025/26, the FYR for cars with emissions of 1-50g/km will increase to £110 and for emissions of 51-75g/km will increase to £130. For all cars with emissions greater than 75g/km the rates will double.
Fuel Duty
The rate of fuel duty has been frozen for a further 12 months to 22 March 2026, which is good news.