Increase in Company Car Tax (BIK) Across All Vehicle Types

The Benefit-in-Kind (BIK) rate for zero-emission vehicles is set to increase by 1% each year from 2025 to 2028. Currently at 2%, it will rise to 3% in April 2025, followed by 4% in 2026 and 5% in 2027. For vehicles emitting 75g/km of CO2 or more, the BIK rate will see a 1% increase in April 2025 and will remain unchanged until at least 2028. The tiered BIK structure based on CO2 emissions will continue, with the highest rate capped at 37% for vehicles producing over 170g/km of CO2.