Company car tax scheme to be targeted in Budget
Scheme intended to create greener car use has created a tax loophole, says government
Changes to car fleet tax rules could emerge during the Budget, over
government concerns that a green car scheme has created a tax loophole.
The government is concerned that ECOS, an
ownership scheme , has allowed business to circumvent penalties for
driving high carbon emission cars.
Employees are paid 40p per mile by their employer tax-free, for up to 10,000
miles, which had been argued did not discourage people out of bigger cars.