Company Car and Van Taxation
The five year exemption for zero emission cars and the lower rate of 5% for ultra-low emission (1-75gm/km) cars has ended.
From 2015/16 two new bands provided a 5% rate for cars with CO2 emissions of 0-50gm/km and a 9% band for cars with CO2 emissions of
51-75gm/km. The rate was 13% for cars with CO2 emissions of between 76-94gm/km, 14% for 95-99gm/km, etc. Up to a new maximum of 37%.
To summarise, from 6 April 2015 the rules are:
0-50gm/km* - 5%
51-75gm/km* - 9%
76-94gm/km* - 13%
95-99gm/km* - 14%
Graduated increases of 1% per 5gm/km up to a maximum, including the diesel supplement, of 37%.
NB: Where the emissions do not end in a 5 or 0, round down to the nearest 5 or 0 but not in the brackets marked with a *.
April 2016 Onwards
From April 2016 the Government will remove the 3% diesel supplement so that diesel cars will be subject to the same level of tax as petrol cars.
In 2016/17, the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 7% and 11% for the 51-75gm/km band. The rate will be 15%
for cars with CO2 emissions of between 76-94gm/km, 16% for 95-99gm/km, etc. Up to the new maximum of 37%.
Fuel Duty 2016-17
From 6 April 2015 employees who received free private fuel from their employers for company cars will pay more income tax on this benefit.
For company car drivers the figure used as the basis for calculating the benefit is increased to £22,200 for 2016/17.
The van fuel benefit charge is £598 for 2016/17.