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BIK threshold changes on 1 April

Date: 24 March 2011

The 15% benefit-in-kind emission threshold for company car tax for 2011/2012 drops on 1 April to 125g/km compared with 130g/km last year.

All other bandings tighten by 5g/km up to a maximum of 35%, while the 3% diesel premium remains.

The change is the usual annual drop, but next year will see a more dramatic one for those looking to pay the 10% minimum.

From April 2012, the current 10% band for sub-120g/km switch to an extended banding system with a 1% rise for every 5g/km increase in CO2 emissions from 10%. From April 2012, vehicles emitting less than 99g/km will be eligible for a 10% benefit-in-kind banding.

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