Motor Vehicles: Taxation

Treasury written question – answered on 8th June 2020.

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Photo of Patricia Gibson Patricia Gibson Shadow SNP Spokesperson (Consumer Affairs)

To ask the Chancellor of the Exchequer, if he will review the tax liability for Benefit in Kind vehicles not registered before 6 April 2020 as a result of covid-19 restrictions which under the Worldwide Harmonized Light Duty Vehicles Test Procedure will be liable for an average increase in tax of £18 per month.

Photo of Kemi Badenoch Kemi Badenoch The Exchequer Secretary

The Government recognizes the challenges faced by households as a result of COVID-19. This is why the Government has announced unprecedented support for public services, businesses and workers to protect them against the current economic emergency.

The Government has not delayed the introduction of WLTP. WLTP strengthens the link between the vehicle tax system and the true environmental impact of car purchasing decisions as well as allowing consumers to make more informed decisions between model variations. From 1 January 2021 only WLTP emissions figures will be shown on registration documents for new cars.

However, to ease the transition to WLTP, company car tax appropriate percentages for effected vehicles have been reduced for two years so company car drivers do not see a significant increase in their tax liabilities.

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