Recent changes in the way company cars are taxed places the emphasis on the environmental qualities of the car – talking into account (as well as the car’s price) the type of fuel used and carbon dioxide (C02) emissions.
Business mileage is no longer used to calculate company car tax.
Cars with an approved CO2 emissions figure
The charge will build up from 15% of the car's price, for cars emitting CO2 at or below a 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 level will gradually be reduced as cars get more fuel efficient. Details are given in the table below.
2005/06 to 2007/08 (g/km) |
Taxable % of list price |
| 140 |
15* |
| 145 |
16* |
| 150 |
17* |
| 155 |
18* |
| 160 |
19* |
| 165 |
20* |
| 170 |
21* |
| 175 |
22* |
| 180 |
23* |
| 190 |
26* |
| 200 |
27* |
| 205 |
28* |
| 210 |
29* |
| 225 |
30* |
| 230 |
31* |
| 235 |
32* |
| 240 |
33** |
| 245 |
34*** |
| 250 |
35 |
| |
Emissions figures for vehicles are rounded down to the nearest 5g/km |
Diesel supplements waived if Euro IV emission |
standard met and vehicle is registered before 1 January 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:
Engine size |
% of car's price on which tax will be charged |
| |
Pre 1/1/98 car |
1/1/98 or later |
0 - 1,400cc |
15% |
15%* |
1,401 - 2,000cc |
22% |
25%* |
2,001cc+ |
32% |
35% |
Diesel cars
*Diesel cars will be subject to a 3% suppplement, but this will not take the maximum charge above 35%.
Electric cars
If a car runs solely on electricity the charge will be on 15% of the car's price.