The fuel benefit charge, that sets out the amount employees given free fuel by their company will be taxed, has risen by £800 to £18,800.
The chancellor said the rise is index-linked, and it takes effect from 6 April 2011.
The cash equivalent of the taxable benefit is determined by multiplying a set figure (currently £18,000) by the appropriate percentage for the car, based on its CO2 emissions (grams per kilometre), using the Benefit-in-Kind company car rates.
The van fuel benefit charge has been frozen at £550 for 2011-12, while the van benefit charge itself is also frozen at £3000 for the same period.
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