Company car tax rates
The company car benefit-in-kind charges for 2014/15 were announced prior to the 2014 Budget. The minimum benefit is 5% for emissions between 1-75g/km, from 76g/km up to 94g/km the rate is 11%. From 95g/km to 99g/km the rate is 12% and increases by 1% for every full 5g/km up to a maximum of 35% for emissions of 210g/km or more.
The Budget documents note significant changes to the company car tax rules in 2014/15, 2015/16 and 2016/17.
The changes are as follows:
- From 2017/18, the appropriate percentage of list price subject to tax will increase by two percentage point for cars emitting more than 75 g/km of carbon dioxide, to a maximum of 37% in 2017/18 and 2018/19.
- From 2017/18, there will be a four percentage point 0-50 and 51-75 gCO2/km bands and between the 51-75 and 76-94 gCO2/km bands. In 2018-19 this differential will reduce to three percentage points.
- Van Benefit Charge (VBC) Support for Zero Emission Vans – Legislation will be introduced in Finance Bill 2015 to extend VBC support for zero emission vans to 5 April 2020 on a tapered basis.