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Company Car Tax Explained:
This section explains how your company car benefit tax is calculated.
Cars with an approved CO2
emissions figure:
The charge will build up from 15% of the car's list price
new, for cars emitting CO2 at or below the qualifying
level, in 1% steps for every addtional 5 grams per kilometre
(g/km) over that level. The maximum charge will be on
35% of the car's price.
| The qualifying levels are : |
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2004-2005 |
145 g/km |
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2005-2006 |
140 g/km |
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2006-2007 |
140 g/km |
Diesel cars
Diesel cars will be subject to a 3% suppplement, but this
does not take the maximum charge above 35% and there is no
supplement if they meet the 'EURO IV' emissions standards
provided the car is registered prior to 1/1/2006.
Cars with no approved CO2 emissions figure:
Cars without an approved figue of CO2 emissions will be taxed according to engine size as follows :
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0 - 1,400cc |
15% |
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1,401 - 2,000cc |
25% |
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2,001cc+ |
35% |
Older cars
Cars registered before 1 January 1998 will also be taxed according to engine size as follows :
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0 - 1,400cc |
15% |
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1,401 - 2,000cc |
22% |
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2,001cc+ |
32% |
Examples of charges:
Note: The exact CO2 figure is rounded down to the nearest 5 grams per kilometre (g/km).
| Example 1 |
Car with a
petrol engine registered after January 1998 with a list
price of £15,000 and an approved CO2 emission factor
of 197g/km (rounded to 195g/km). |
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Car benfit charge for
2006-2007 is : List price £15,000 x 26% =£3,900 |
| Example 2 |
Car with a
diesel engine (not Euro 1V compliant) registered
after January 1998 with a list price of £15,000
and an approved CO2 emission factor of 160g/km |
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Car benfit charge for
2006-2007 is : List price £15,000 x 22%* =£3,300
*includes 3% diesel supplement |
| Example 3 |
Car registered on 3 October 1997 with a list price of £17,500 and an 1800cc petrol engine |
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Car benefit charge for
2006-2007 is : List price £17,500 x 22% =£3,850
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