Company Car Tax

In April 2002, there was a change in the way company cars are taxed to help protect the environment. Cleaner more fuel efficient cars will be rewarded by linking the tax charge to the car's exhaust emissions, in particular its carbon dioxide emissions.

The starting point for calculating the benefit charge will continue to be the list price of the car (plus accessories) but the percentage of the price actually charged to tax will depend on the car 's CO2 emissions (see table below).

e.g Company car list price £16,995 (petrol) with the CO2 rating of 200 g/km will be taxed as follows for 2007/2008:

£16,995 x 27% = £4,588.65

This figure is then subject to the personal rate of tax to determine the cost in tax to the individual.

Car benefit charges for cars with an approved CO2 emissions figure

All charges subject to change. Please check with your advisor

(1) From April 2008 there is a new percentage charge of 10% for cars that have CO2 emissions of 120 g/km or less. In all instances the exact CO2 figure is rounded down to the nearest 5g/km, except for the 10% band applying from 2008/2009 where the exact CO2 emissions figure must be 120 g/km or less to qualify.

Diesel supplements (from 1st January 2006 all diesel vehicles registered will be liable to pay a deisel supplement)

* Add 3%, ** Add 2%, *** Add 1%, **** Maximum charge, so no diesel supplement.