From
6 April 2002, the tax charge on a company car is based
on a percentage of its list price arrived at as follows:
- Find the CO2 emission rating of the
car (measured in grams per km). The definitive CO2
figure is recorded on the V5 vehicle registration
document for cars registered after November 2000.
- Round the figure down to the nearest
5g/km.
- Referring to the table below, use the
rounded down figure to find the percentage figure
to be applied. The minimum is 15%; the maximum is
35%. Diesel cars attract a 3% supplement, but the
supplement will not be added if the car achieves the
Euro IV emissions standard. However, following changes
in the budget, all diesel vehicles registered after
31/12/2005 will attract the 3% supplement.
- The taxable benefit
is the list price of the car when new multiplied by
the percentage figure from the table. The list price
is subject to a price cap of £80,000. Therefore,
a 40% tax payer will pay 40% of this figure over the
year and a 22% tax payer will pay 22% of the figure.
Example:
A vehicle that falls into the 20% band - with a P11D
value of £15,000 will cost a 40% tax payer £1,200
a year (equivalent to 40% of '20% of £15,000')
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