fbpx

Purchasing a company car – check the benefits in kind increases.

This increase will take effect from 6 April 2017 for cars with no registered CO2 emissions which are unable to produce CO2 under any circumstances by being driven, and from 6 April 2019 for all other cars.

For cars which have neither a CO2 emissions figure nor an engine cylinder capacity and which cannot produce CO2 emissions in any circumstances by being driven the rates will be as follows:

  • From 6 April 2017 to 5 April 2018 – 9%
  • From 6 April 2018 to 5 April 2019 – 13%
  • From 6 April 2019 – 16%.

For other cars with CO2 emissions the graduated table of company car tax bands will increase from 6 April 2019 as follows:

  • Cars with emissions of 0-50g CO2 per km – 16%
  • Cars with emissions of 51-75g CO2 per km – 19%
  • Cars with emissions of 76-94g CO2 per km – 22%
  • A 3% increase for each rise in emissions of 5g CO2 per km from 95g CO2 to the existing maximum of 37%.

For other cars without a CO2 emissions figure and for cars first registered before 1 January 1998, from 6 April 2019 the appropriate percentage for the bands will be:

  • Cylinder capacity of up to 1,400cc – 23%
  • Cylinder capacity of more than 1,400cc and no more than 2,000cc – 34%
  • Cylinder capacity of more than 2,000cc – 37%.

Article from ACCA In Practice