The chancellor has given the business car market clarity with regard to car benefit-in-kind charges until April 2017, but the industry is unlikely to like what it can now see.
There will be a one percentage point rise for all cars over 75g/km in April 2014, but in each of the next two years there will be a further two percentage point rise, which means the lowest BIK band in April 2016 will be 15%.
The higher point will also increase in April 2015 to a 37% banding for any vehicles over 209g/km, dropping to 200g/km or above in 2016.
The 3% BIK surcharge will also be removed for the 2016-17 tax year.
| Company car Benefit-in-Kind bandings |
| BIK % banding |
2011-12 (g/km) |
2012-13 (g/km) |
2013-14 (g/km) |
2014-15 (g/km) |
2015-16 (g/km) |
2016-17 (g/km) |
| 0 |
0 |
0 |
0 |
0 |
n/a |
n/a |
| 5 |
n/a |
1-75 |
1-75 |
1-75 |
n/a |
n/a |
| 10 |
below 121 |
76-99 |
76-94 |
n/a |
n/a |
n/a |
| 11 |
n/a |
100 |
95 |
76-94 |
n/a |
n/a |
| 12 |
n/a |
105 |
100 |
95 |
n/a |
n/a |
| 13 |
n/a |
110 |
105 |
100 |
0-94 |
n/a |
| 14 |
n/a |
115 |
110 |
105 |
95 |
n/a |
| 15 |
121-129 |
120 |
115 |
110 |
100 |
0-94 |
| 16 |
130 |
125 |
120 |
115 |
105 |
95 |
| 17 |
135 |
130 |
125 |
120 |
110 |
100 |
| 18 |
140 |
135 |
130 |
125 |
115 |
105 |
| 19 |
145 |
140 |
135 |
130 |
120 |
110 |
| 20 |
150 |
145 |
140 |
135 |
125 |
115 |
| 21 |
155 |
150 |
145 |
140 |
130 |
120 |
| 22 |
160 |
155 |
150 |
145 |
135 |
125 |
| 23 |
165 |
160 |
155 |
150 |
140 |
130 |
| 24 |
170 |
165 |
160 |
155 |
145 |
135 |
| 25 |
175 |
170 |
165 |
160 |
150 |
140 |
| 26 |
180 |
175 |
170 |
165 |
155 |
145 |
| 27 |
185 |
180 |
175 |
170 |
160 |
150 |
| 28 |
190 |
185 |
180 |
175 |
165 |
155 |
| 29 |
195 |
190 |
185 |
180 |
170 |
160 |
| 30 |
200 |
195 |
190 |
185 |
175 |
165 |
| 31 |
205 |
200 |
195 |
190 |
180 |
170 |
| 32 |
210 |
205 |
200 |
195 |
185 |
175 |
| 33 |
215 |
210 |
205 |
200 |
190 |
180 |
| 34 |
220 |
215 |
210 |
205 |
195 |
185 |
| 35 |
225 |
220 |
215 |
210 |
200 |
190 |
| 36 |
n/a |
n/a |
n/a |
n/a |
205 |
195 |
| 37 |
n/a |
n/a |
n/a |
n/a |
210 |
200 |
| • Round emissions down to the nearest figure |
| • For diesel models add three bands, up to a maximum 35% banding until the end of 2014-15 tax year, and 37% for 2015-16 |
| • Pure electric cars rated at 0% BIK |
|
Follow BusinessCar on TWITTER.