Company Car Tax Benefit In Kind Rate Change


From April 2015

The 5 year exemption for zero emission cars and the lower rate of 5% for ultra-low emission (1-75gm/km) car has ended)

From 2015/16 two new bands provide for a 5% rate for cars with CO2 emissions of 0-50 gm/km and a 9% band for cars with CO2 emissions of 51-75gm/km, etc up to a new maximum of 37%. To summarise from 6.04.2015 the rules are:

  • 0-50gm/km* – 5%
  • 51-75gm/km* – 9%
  • 76-94gm/km* – 13%
  • 95-99gm/km – 14%
  • graduated increases of 1% per 5gm.km up to a maximum, including the diesel supplement of 37%

NB – where the emissions do not end in a 5 or 0, round down to the nearest 5 or 0 but not in the brackets with a *

From April 2016 onward

From April 2016 the Government has removed the 3% diesel supplement so that diesel cars will be subject to the same level of tax as petrol cars.

In 2016/17 the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 7% and 11% for the 51-75gm/km band.  The rate will be 15% for cars with CO2 emissions of between 76-94 gm/km, 16% for 95-99gm/km, etc. up to the new maximum of 37%

From April 2017 onwards

In 2017/18 the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 9% and 13% for the 51-75gm/km band.  The rate will be 17% for cars with CO2 emissions of between 76-94 gm/km, 18% for 95-99gm/km, etc. up to the maximum of 37%

From April 2018 onwards

In 2018/19 the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 13% and 16% for the 51-75gm/km band.  The rate will be 19% for cars with CO2 emissions of between 76-94 gm/km, 20% for 95-99gm/km, etc. up to the maximum of 37%

Advertisements

Leave a comment

Filed under Accountancy & Tax Stuff

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s