Taxation Issues Company Cars and Taxation

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Existing and New car tax rates for 2009

Alistair Darling’s 2008 Budget has outlined changes to vehicle excise duty - reclassifying vehicles according to the levels of carbon dioxide they emit. While it should be good news for those with environmentally-friendly cars, it will hike the amount paid by owners of high-polluting vehicles who also face a "showroom tax" payable in the first year they buy a new car.

Graduated Vehicle Excise Duty (Road Fund Licence) Table

EXISTING SYSTEM 2008/2009
Tax Band CO2 Emissions g/km Petrol Diesel
A Up to 100 £0 £0
B 101 - 120 £35 £35
C 121 - 150 £115 £115
D 151 - 165 £140 £140
E 166 - 185 £165 £165
F 186 - 225 £205 £205
G Over 226 £300 £300
Vehicle first registration fee Vehicles registered and taxed for the first time on the Driver and Vehicle Licensing Agency (DVLA) records will also be required to pay a fee of £50

NEW SYSTEM
CO2 emissions (g/km)   2009-10 tax From 2010-11
1st year
tax
2nd year
and after tax
Tax
band
Up to 100 0 0 0 A
101-110 £20 0 £20 B
111-120 £30 0 £35 C
121-130 £90 0 £95 D
131-140 £110 £115 £115 E
141-150 £120 £125 £125 F
151-160 £150 £155 £155 G
161-170 £175 £250 £180 H
171-180 £205 £300 £210 I
181-200 £260 £425 £270 J
201-225 £300 £550 £310 K
226-255 £415 £750 £430 L
Over 255 £440 £950 £455 M

All of the documents can be obtained from us in a word format, so that they can be personalised and edited to suit your company or business. This service is free of charge, on request or phone 01908 262662.


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