BUDGET 2011: Company car tax to go up from 2013/14
Although the 3% diesel surcharge has been retained, the rates for cars emitting less than 95g/km have been frozen, ensuring that such models continue to qualify for the minimum BiK rate of 10% for petrols and 13% for diesels in 2013/14. There is also a new 5% rate for ultra-low carbon cars with less than 75g/km.
However, drivers of cars with emissions from 95g/km to 219g/km will have to pay increased BiK tax from April 2013, with the rating to go up by 1 percentage point. This means that diesel cars emitting 200g/km and over will now fall into the top 35% banding, as will petrol cars with 215g/km and higher.
Despite pressure from organisations such as ACFO and the BVRLA, the BiK rates for 2014/15 have not been announced, meaning that in the coming months fleets will be taking delivery of company cars without knowing how such cars will be rated for tax from 2014.
In addition, the 3% diesel surcharge has been retained, in spite of comments from ACFO and the BVRLA that the charge is outdated.
Meanwhile the van benefit charge is to be frozen at £3,000 in 2011-12.