Capital Allowances

On reducing balance (max. £3,000 p.a. per car)
20%
Cars emitting not more than 110g/km CO2 registered 17 April 2002 - 31 March 2013 ++
100%

++ Any leasing contracts entered into before 1 April 2008 involving cars with an emission of not more than 120g/km CO2 will qualify for the 100% deduction.
++ There is no £12,000 restriction for these cars.

Car Benefits
Petrol and diesel cars with approved CO2 emissions registered after 31 December 1997 **
gr/KM of CO2 emissions
Petrol %
List price max. £80,000
Diesel % ***
List price max. £80,000
Less than 121
10
13
121 to 139
15 *
18
140 to 144
16 *
19
145 to 149
17 *
20
Tax charge increases by 1% per each additional 5 gms/km until:
215 to 219
31 *
34
220 to 224
32 *
35
225 to 229
33 *
35
230 to 234
34 *
35
235 and over
35 *
35

* Reduce by 2 if car runs on E85 fuel
** Price % taxable for petrol and diesel cars with no approved C02 emissions depends on engine size, petrol or diesel and date first registered
*** Diesels cars with Euro 4 approved engines - use petrol percentages, if registered before 1 January 2006.

Note: Further percentages apply to cars powered by gas or electricity and vary according to whether the car is purpose built or converted.

Car fuel benefits (not electric cars)

For 2008/09, car fuel is calculated by applying the above car benefit percentages to a figure of £16,900 (2007/08: £14,400)

VAT car fuel scale charges (2008/09)
gr/KM of CO2
Quarterly returns (£)
Monthly returns (£)
under 120
138
46
125
207
69
130
207
69
135
207
69
140
221
73
145
234
78
150
248
82
155
262
87
160
276
92
165
290
96
170
303
101
175
317
105
180
331
110
185
345
115
190
359
119
195
373
124
200
386
128
205
400
133
210
414
138
215
428
142
220
442
147
225
455
151
230
469
156
235 or more
483
161

Advisory fuel rates for company cars from 1st January 2008 - 30th June 2008 (rates per mile)
Engine size:
Petrol
Diesel
LPG
1,400 cc or less
11p
11p
7p
1,401-2,000 cc
13p
11p
8p
over 2,000 cc
19p
14p
11p

Note: HM Revenue & Customs have announced that rates will now be reviewed biannually and generally any changes will take effect on 1 January and 1 July.

Vans

From 6 April 2007 the taxable benefit for the unrestricted use of company vans will be £3,000 (with no reduction for older vans) plus a further £500 of taxable benefit if fuel is provided by the employer for private travel.

The maximum tax payable on the use of a company van is £1,400 p.a., and the employer's Class1A NIC payable is £448 p.a.