Law Updates

Company Car Taxation

From 6 April 2002 new rules apply to the taxation of company cars.  The new charges are still based on a percentage of the car's list price, but will also be linked to CO2 emissions.

The lowest rate of emission - initially 165gm/km - will attract the lowest rate of charge - 15% of list price, but the same car will attract 17% in 2003-04 and 19% in 2004-05 as lower emission rates are progressively introduced to encourage manufacturers to produce more efficient engines.  Diesel-engined cars produce less CO2 but will attract an extra 3% charge because their emissions are linked to respiratory illness.

For details of the new CO2 emission figures for a range of cars click here

For information on how to calculate the tax on a company car click here.

 Alternatively, contact us on 0845 130 7979 or by e-mail