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Car taxes tightening for the new financial year

Date: 22 March 2010   |   Author: Tristan Young

After two years of stability, the next three years will each see a 5g/km tightening of company car taxation.

From April 2010 company cars will be subject to a new benefit-in-kind rates that for cars over 134g/km CO2 means a 1% point increase in their tax band.

Alongside this change VED, or road fund licence, costs will increase for almost all cars with CO2 emissions above 100g/km.

There are larger increases for new cars registered from April with CO2 outputs over 165g/km. But given a high proportion of new fleet cars are now well below this level, the new first-year tax disc rates are unlikely to greatly impact fleets.

However, Masterlease, while acknowledging the impact will be limited for the majority of fleets, has warned that some fleets may be hit by the new VED bands.

"If you have a large fleet of middle-range vehicles, there are obviously savings to be made and lower-emitting vehicles also make a positive statement as far as the environment is concerned," said sales and marketing director Clive Forsythe.

He added that Masterlease was writing to all its customers to spell out the tax changes for the coming financial year.

New VED bands
BandCO22010/112010/11 (first year)
AUp to 100g/km£0£0
B101-110g/km£20£0
C111-120g/km£30£0
D121-130g/km£90£0
E131-140g/km£110£110
F141-150g/km£125£125
G151-165g/km£155£155
H166-175g/km£180£250
I176-185g/km£200£300
J186-200g/km£235£425
K201-225g/km£245£550
L226-255g/km£425£750
MOver 255g/km£435£950

Benefit-in-kind CO2 bands by tax year
% of
P11D price
2010/11
g/km
2011/12
g/km
2012/13
g/km
10120120sub-100
11n/an/a100
12n/an/a105
13n/an/a110
14n/an/a115
15130125120
16135130125
17140135130
18145140135
19150145140
20155150145
21160155150
22165160155
23170165160
24175170165
25180175170
26185180175
27190185180
28195190185
29200195190
30205200195
31210205200
32215210205
33220215210
34225220215
35230225220
Add 3% for diesels up to a max of 35%



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