High CO2 emitting company cars to get higher penalties from 2010
12 March 2008

Company car users will have to pay even closer attention to their cars’ CO2 figures, after plans to tighten the current rules further were announced in the budget.One of the most notable moves is the tightening of CO2 rules on Company Car Tax. From April 2010 the lower threshold for the 15 per cent tax band will be reduced from 135g/km to 130g/km; further reducing the number of cars to fall into it. No announcement was made regarding any increase or decrease to the 3 per cent diesel surcharge, meaning that fleet favourites like the BMW 320d will move to a 19 per cent benefit-in-kind assessment.Rules regarding the ability of company owners to write off the value of their vehicles will also be tightened up – users will only be able to write off 10 per cent of the value of their vehicles with CO2 emissions above 160g/km, while cars of 160g/km and less will be eligible for a 20 per cent ‘writing-down allowance’. While the 100 per cent first-year allowance on low-CO2 vehicles has been extended until 31 March 2013 (a further five years), the bottom cut-off has been lowered to 110g/km (it’s currently 120g/km).

John McIlroy

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Comments
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12 March 2008

Oh, do they not make enough money? Is 5g/km reduction gonna make a huge difference? You bet it is, TO THEIR POCKETS!

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