Company Car Taxation

Changes that will take effect from April 2010

• From April 2010, all of the 13 VED rates will change again with the introduction of a first-year rate commonly called the 'showroom tax'

Changes that will take effect from April 2011

• The £80,000 cap on company car list prices for the purposes of Company Car Tax ("CCT") is to be abolished
• Discounts for Petrol Hybrid/Bioethanol and LPG are to be abolished.
• 5g/km reduction for Company Car Tax (minimum threshold set at 125g/km)
• All electric-only cars set at 9% BIK
• Removal of reduction for Euro IV standard diesel cars registered before January 2006.

Consideration for consultation

• To continue to provide an incentive to purchase the lowest emitting vehicles on the market, the Government intends to remove the 10% starting rate for vehicles below 120 g/km and instead extend the system of CCT bands so that they increase by 1 percentage point with every 5g CO2 per km increase in emissions, from 10%.