The same increases are also in place for ultra-low emission cars emitting less than 75g per kilometre – in other words, most plug-in hybrid cars.
So a Range Rover plug-in hybrid will be taxed at just 13% in five year – offering up many more years of Range Rover driving for SME CEOs.
Rates for all other bands will increase by 1% (up to a maximum of 37%) in 2025/26, and will then be frozen for the next two years.
The rates for electric car company car tax will also ensure that salary sacrifice remains a popular choice.