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It was confirmed in the Autumn Statement that, from 2025-26 until 2027-28 the appropriate percentage for company cars which produce zero emissions and cars which produce less than 75g of carbon dioxide per kilometre will increase by one percentage point. A maximum appropriate percentage of 5% will apply for electric cars and 21% for ultra-low emission cars.
Rates for all other cars which produce 75g of carbon dioxide per kilometre and above will be increased by one percentage point for the tax year 2025-26 and will then be maintained at this level until 5 April 2028, up to a maximum appropriate percentage of 37%.
