Policy paper

Review of WLTP and vehicle taxes

A review into the impact of the Worldwide harmonised Light vehicles Test Procedure (WLTP) on Vehicle Excise Duty and company car tax.

Documents

Details

Updated 09/07/2019

Detail of outcome

This document summarises the responses received to the review.

The key decisions taken by the government are as follows:

  • for cars first registered from 6 April 2020, most company car tax rates will be reduced by 2ppt in 2020-21 before returning to planned rates over the following two years – increasing by 1ppt in 2021-22 and 1ppt in 2022-23
  • to accelerate the shift to zero emission cars, all zero emission models will pay no company car tax in 2020-21, 1% in 2021-22 before returning to the planned 2% rate in 2022-23
  • on Vehicle Excise Duty, a call for evidence will be published later this year seeking views on moving towards a more dynamic system which recognises smaller differences in carbon dioxide (CO2) emissions

To ensure the government strikes the balance between protecting consumers and meeting our climate change commitments, this review considers whether vehicle tax changes are required once the Worldwide harmonised Light vehicles Test Procedure (WLTP) is adopted from April 2

This review closes for response on Sunday 17 February 2019.

Published 19 December 2018
Last updated 11 July 2019 + show all updates
  1. Correction to list of respondents.
  2. Updated with outcome response.
  3. First published.