• Income tax thresholds will be frozen at current levels until April 2031 and vehicle Benefit in Kind levels are unchanged from previous announcements.
  • Company car tax on Euro 6e-bis PHEVs registered before April 2028 will be reduced via a legislative easement lasting until April 2031. This will take the form of a nominal CO2 figure of 1 where the WLTP figure is greater than 50 g/km CO2.There are already 120 such vehicles on the market so we will add new data fields by 5th December. Battery range and Charge Sustaining MPG are not affected by the steeper-curved  Utility Factor used in the new standard. Capital allowances will use the WLTP figures.
  • ECO schemes get a reprieve until April 2030, with transitional arrangements thereafter.
  • Car salary sacrifice is untouched and could prove more popular as pension salary sacrifice gets restricted, child benefiit expands and other motoring costs increase.
  • The Motability scheme no longer covers premium and luxury cars.
  • The Expensive Car Supplement threshold will rise from £40,000 to £50,000 in April 2026
  • A new Electric Vehicle Excise Duty is planned from April 2028 at 3 pence per mile, and 1.5 pence for PHEVs. The government envisages that this will be paid up front each year, and adjusted after a visit to the MOT station each year. How the scheme will work is under consultation.
  • Fuel Duty will increase from the current level of 52.95 pence in September 2026 and continue to rise with inflation at least in subsequent years.
  • The Electric Car Grant scheme will be topped up by £1.3 billion and remain open to April 2030.
  • Writing Down Allowance on the main pool of plant and machinery will reduce from 18% to 14%
  • Leasing companies can claim a First Year Allowance of 40% vehicles other than cars from 1st January 2026.
  • Employee pension contributions over £2,000 per year will not be exempt from Employee's National Insurance from April 2029.