Background Note
17.The Government has introduced a new initiative to encourage the take-up of the most environmentally friendly and least polluting vehicles by company car and van fleets by introducing a nil taxable benefit for cars and vans which are incapable of producing CO2 emissions under any circumstances when being driven.
18.The Government has also undertaken to provide a further initiative for ultra low emission company cars – that is, those with an approved CO2 emissions figure of 75 grams per kilometre or less.
19.Together, these measures recognise and encourage advances in technologies underpinning the future development of both zero-emission and ultra low emission vehicles.
20.The appropriate percentage for zero-emission company cars will be set at 0 per cent for the tax years 2010-11 to 2014-15. The level of the cash equivalent for zero-emissions company vans will be set at nil for the same period.
21.The appropriate percentage for ultra low emission cars will be set at 5 per cent for the tax years 2010-11 to 2014-15.