Car taxes tightening for the new financial year
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|
|Band||CO2||2010/11||2010/11 (first year)|
|A||Up to 100g/km||£0||£0|
|Benefit-in-kind CO2 bands by tax year|
|% of |
|Add 3% for diesels up to a max of 35%|