Automotive Industry Digest have laid out the changes in Car Tax that were announced in the Budget by the Chancellor George Osborne
The changes are as follows:
- The appropriate percentage of list price subject to tax will increase by one percentage point for cars emitting more than 75 g/km of carbon dioxide, to a maximum of 35% in 2014/15, and by two percentage points, to a maximum of 37% in both 2015/16 and 2016/17.
- From April 2015, the five-year exemption for zero carbon and ultra low carbon emission vehicles will come to an end. The appropriate percentage for zero emission and low carbon vehicles will be 13% from April 2015 and will increase by two percentage points in 2016/17. The Budget papers made no specific mention of the separate tax treatment of zero emission electric cars referring only to ‘petrol fuelled cars’ and ‘diesel fuelled cars’ for tax years 2015/16 and 2016/17.
- From April 2016, the Government will remove the 3% diesel supplement differential so that diesel cars will be subject to the same level of tax as petrol cars.
- The Government will exclude certain security enhancements from being treated as accessories for the purpose of calculating the cash equivalent of the benefit on company cars made available for private use. The changes take effect retrospectively fromApril 6, 2011.
Go to Automotive Industry Digest to read the full story “Major changes in company car – rates to rise significantly”
29th March 2012