From April 2002, a new system of company car taxation came into effect. The existing regime that encourages company car drivers to drive unnecessary miles has been replaced by a system that encourages the use of more environmentally friendly vehicles.
This tax calculator compares the old regime to the current regime in order to provide you with an indication of how the changes affect you. The new tax system will work as follows:
- List price still to be used as the basis of the taxable benefit calculation
- Business mileage discounts to be replaced by a sliding scale based on CO2 emissions
- For petrol and diesel cars the minimum and maximum benefit charges of 15% and 35% respectively to remain
- Starting level of CO2 emissions attracting the minimum 15% charge will be 165g/km (reducing to 145g/km in 2004/05)
- Charge will increase by 1% for each 5 g/km of CO2 emissions over the minimum
- Diesels will attract a 3% supplement due to the emission of other poisons, unless they comply with Euro IV emission standard
- Special discounts for alternative fuel vehicles
Car Tax Calculator courtesy of Lex Vehicle Partners
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