Company Car Tax.
The new company car tax system, outlined in the last budget, will introduce
a series of measures that will directly affect motorists and employers.
- A new system for taxing private fuel benefit from April 2003
based on co2 emissions.
- Higher employer’s National Insurance contributions on
New VAT scale charges for private fuel
- No duty changes for petrol and diesel.
- A reduction in duty for biodiesel (duty on biodiesel will now
be charged at 20p per litre less than petrol and diesel).
- Faster tax relief for businesses buying low emission cars.
- Reductions in tax disc rates / Vehicle Excise Duty (VED)
New Benefit-in-Kind Taxation.
A revised system for taxing company car benefit came into force on 6th
April 2002. As part of a series of initiatives designed to tackle global
warming and improve
local air quality, the new system rewards cleaner, more fuel-efficient
cars. It links the Benefit-in-Kind to a car’s exhaust emissions.