LOW-CO2 CARS: Emissions regime tightens, although choices still plentiful
Date:
13 June 2013
Sub-76g/km
For the next two tax years to April 2015 vehicles emitting between 1-75g/km will be placed in the 5% company car benefit-in-kind boundary, before the newly announced 2015-16 rates of 5% for 0-50g/km and 9% for 51-75g/km, both rising by two percentage points in 2016-17. The Budget also confirmed that vehicles in the 51-75g/km band will be three percentage points lower than the 76-94g/km band in 2017-18, closing to two percentage points for the next two tax years, although the exact bandings won't be revealed until future Budgets.
It's clear that sub-75g/km is where the Government is pinning its target for carmakers. That's backed up by Transport for London, which late last year released a consultation document detailing plans for the 100% congestion charge discount to be cut from sub-100g/km to 75g/km or under. The consultation closed in February with the final verdict expected imminently ahead of the proposed implementation on 1 July 2013.
For fleets that buy outright the 75g/km band will also become more important because from April 2015 to March 2018 it'll be the point at which they can write down 100% of the value of the asset against tax in the first year.
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