Statement from the MD: Paul Taylor
Audience: Corporate Customers
Yesterday, the Government published the draft Finance Bill 2025-26, which outlines forthcoming changes to the taxation of Employee Car Ownership Schemes (ECOS). At this stage, the legislation is still in draft form, and all stakeholders including Car Benefit Solutions (CBS), are committed to further consultation.
Here’s what you need to know from the draft legislation:
- The proposed legislation will not apply until 6 October 2026 at the earliest.
- The changes proposed are focused on specific aspects of current ECOS design, but do not prohibit the sale of new cars to employees, or the provision of associated finance.
- The proposed changes have no impact on company car, salary sacrifice or lease solutions.
- These proposed changes highlight the importance of working with experts such as CBS to ensure full compliance.
While some adjustments are required for all ECOS, including those provided by CBS, our promise remains unchanged: we’re here to make sure you and your employees continue to enjoy rewarding, valuable car benefits – now and in the future.
What does this mean for your schemes?
There are no changes required for any live vehicles owned by employees under an ECOS, until at least 6 October 2026. You can continue to drive your existing vehicle until then with peace of mind.
What are the next steps for us?
Here at CBS, we’re already hard at work evolving our solutions. In addition to ECOS we already provide market leading salary sacrifice and company car solutions, as well as those for car entitled cash takers. Our innovative approach puts Electric Vehicles (EVs) and Plug-in Hybrids (PHEVs) front and centre, offering substantial savings to both employers and employees.
Our commitment is to provide every customer with a rewarding, value-adding car scheme, regardless of vehicle type or employee status. So, we’ll be diving deep into the draft legislation in the days ahead, engaging with HMRC as needed, and collaborating closely with you to ensure any changes made only enhance your car benefit experience.
Our focus has always been on delivering robust solutions and with sight of the draft legislation we’re able to move forward with finalising the concepts that we have been evolving since the Autumn Budget last year.
With compliance at the forefront, we’re working with King’s Counsel, and we’ll share more details as soon as possible. We firmly believe that all elements of the draft legislation can be complied with under future scheme design and ensuring this is the case for current ECOS drivers is our priority.
Want more information?
We understand that you may have some further questions, and we’re here to help. Our team will reach out very soon with more information, but if you’d like to chat before then, please don’t hesitate to contact your CBS representative. We’re always happy to support you.