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Budget 2020: New Company Car Tax Rates Released

The Chancellor has announced revised company car tax rates amidst a Budget designed to help soften the blow of Coronavirus.

Earlier today, the Bank of England slashed interest rates to 0.25% in an emergency move to support the economy during the outbreak, with the Chancellor mirroring this in his is budget. The change is the first to benefit-in-kind (BIK) rates since July 2019.

From April 6th company car rates will be reduced by two percentage points, with full electric vehicles (EVs) attracting a new zero rate.

Rates will then increase one percent in each of the tax years for 2021 to 2022 and then again 2022 to 2023.

This move will also include EVs which will also increase by one percent year on year moving forward.

For more information on how these changes will affect your fleet or for more information on adding electric vehicles to your fleet? Simply get in touch.

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