A HMRC car tax change could cause fewer cars to be on the road as the Labour Party Chancellor Rachel Reeves closes a " loophole". Ms Reeves is set to push through a change which will treat employee car ownership schemes as standard company vehicles for tax purposes.

The new rules, scheduled to begin on October 6, 2026, would bring these arrangements under Benefit-in-Kind taxation. Approximately 76,000 staff members across 1,900 businesses currently participate in such programmes.

By closing a loophole, the government stands to generate £275 million, with subsequent annual returns of £220million, £195million and £175million projected through to 2030.

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Robert Forrester, chief executive of Vertu Motors, has

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