“Zenith welcomes the adjustment that has been made by government to limit or remove the impact of the change to WLTP CO2 emissions for many cars and to freeze company car tax for existing cars. It is especially pleasing that the electric rate has been reduced for electric cars to zero Benefit-in-Kind tax (BiK) in 2020 with commitment to low tax rates for the following 2 years, which see a year-on-year 1% increase.

“No doubt with the ever-increasing releases of hybrid, plug-in and electric cars this commitment to lower tax will provide attractive cost options for perk company car drivers, particularly those paying higher rate tax, or for employees with the option to obtain a new, clean, cost-efficient car through a salary sacrifice car scheme.

“Whilst for some cars the move to WLTP may still result in a higher company car tax after the announced 2% reduction, it is important to remember that the cleanest RDE2 compliant diesels will also see a fall of 4%, meaning that clean diesel cars will see an overall reduction in company car tax from April 2020. Great news for businesses where diesel is still the most efficient option for drivers who complete higher mileages.

“Zenith is committed to continuing to work with officials at HM Treasury to secure incentives for low emission cars post 2022/23 tax year, in addition to highlighting the need to make similar adjustments to other vehicle tax thresholds. Today’s announcement is a clear sign that government recognises the pivotal role fleet vehicles play in achieving the objectives set out in the ‘Road to Zero’.

– Claire Evans, head of fleet consultancy