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Road Tax
The amount of carbon dioxide (CO2)
your car emits now has an effect on how much tax you pay.
For new cars registered after 1 March 2001, road tax is based on the
cars CO2 emission level. The current rates applicable to cars from
23 March 2007 are shown below.
|
BAND |
CO2 emissions g/km |
Diesel |
Petrol |
Alternative fuel |
| |
|
12mth |
6mth |
12mth |
6mth |
12mth |
6mth |
|
A |
Up to 100 |
£0.00 |
- |
£0.00 |
- |
£0.00 |
- |
|
B |
101 to 120 |
£35.00 |
- |
£35.00 |
- |
£15.00 |
- |
|
C |
121 to 150 |
£115.00 |
£63.25 |
£115.00 |
£63.25 |
£95.00 |
£52.25 |
|
D |
151 to 165 |
£140.00 |
£77.00 |
£140.00 |
£77.00 |
£120.00 |
£66.00 |
|
E |
166 to 185 |
£165.00 |
£90.75 |
£165.00 |
£90.75 |
£145.00 |
£79.75 |
|
F |
Over 185 |
£205.00 |
£112.25 |
£205.00 |
£112.25 |
£190.00 |
£104.50 |
|
G |
Over 225* |
£300.00 |
£165.00 |
£300.00 |
£165.00 |
£285.00 |
£156.75 |
* if
registered after 23 March 2006
www.direct.gov.uk
COMPANY CAR
TAX
There is a tax charge where a car is made
available to and is available for private use by a director or an
employee earning £8,500 a year or more, or to a member of their family
or household. There is a further tax charge if free or subsidised fuel
is provided for private use in a company car.
The percentage used to
calculate the benefit is based on carbon dioxide (CO2)
emissions measured in grams per kilometre (g/km). A minimum charge of 15% of the car's price will apply to cars
emitting CO2 at or below a specific level, measured in
(g/km). This charge rises in 1% increments for every 5g/km over the
minimum level (with an upper ceiling of 35%.
The basic calculation of
the annual tax payable is:
Vehicle List Price x CO2 emissions
% x
Employee tax rate
The relevant
CO2
emissions percentage is determined by the table below:
|
CO2
emissions of vehicle |
Tax years
2005/06 to 2007/08 (see notes) |
Tax years
2008/09 and 2009/10 (see notes) |
|
Less than 135 |
15% |
15% |
|
135 to 139 |
15% |
15% |
|
140 to 144 |
15% |
16% |
|
145 to 149 |
16% |
17% |
|
150 to 154 |
17% |
18% |
|
155 to 159 |
18% |
19% |
|
160 to 164 |
19% |
20% |
|
165 to 169 |
20% |
21% |
|
170 to 174 |
21% |
22% |
|
175 to 179 |
22% |
23% |
|
180 to 184 |
23% |
24% |
|
185 to 189 |
24% |
25% |
|
190 to 194 |
25% |
26% |
|
195 to 199 |
26% |
27% |
|
200 to 204 |
27% |
28% |
|
205 to 209 |
28% |
29% |
|
210 to 214 |
29% |
30% |
|
215 to 219 |
30% |
31% |
|
220 to 224 |
31% |
32% |
|
225 to 229 |
32% |
33% |
|
230 to 234 |
33% |
34% |
|
235 to 239 |
34% |
35% |
|
240 or over |
35% |
35% |
Notes
Where
the car is a diesel car, there is a supplement of 3% up to the maximum
charge of 35%. This supplement was waived for diesel cars first
registered before the end of 2005 that met the EC emissions standard
known as Euro IV.
From 2006/07, the following discounts apply to alternative fuel
vehicles:
|
Bi-fuel (not a conversion) |
3% |
|
Hybrid petrol-electric |
3% |
|
Electric only |
6% |
From
2008/09, for cars emitting 120 g/km of CO2, the appropriate percentage
will be 10% (diesels will still be subject to the 3% surcharge. From
2008/09 a 2% discount will apply to vehicles capable of running on E85
biofuel.
The 2005 budget included the announcement that the threshold for
the minimum percentage charge rate would be frozen at 140g/km, up to and
including 2007–08. This threshold will be reduced from 140g/km of C02 to 135g/km
C02 for 2008–09.
A new lower, 10% band for company cars with
C02 emissions of 120g/km or lower was also announced in 2006 and will come into effect in 2008–09.
www.hmrc.gov.uk/cars |
