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

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