Company car tax in 2010/11

The June 2010 emergency Budget from the new Con/Lib Dem government confirmed many of the previously announced changes to company car tax to encouraging the purchase and lease of the lowest emitting cars. From April 2011, the threshold for the 15% band of company car tax will be reduced by 5 grams of CO₂ per km, so this band will apply to cars emitting between 121 and 129g CO₂ per km. The cap on car list prices of £80,000 used to calculate the benefit will also be removed on this date as will discounts for the early uptake of Euro 4-standard diesel cars, higher emitting hybrid cars and alternative fuel company cars.

From April 2012 the 10% band for cars emitting 120g CO₂ per km or less will be removed and the system of bands will be extended so that they increase by one percentage point with each 5g CO₂ per km increase in emissions from 10%. The 10% band will apply to cars that emit 99g CO₂ per km or less.

The changes to the band are detailed in the table below:

2009/10		2010/11		2011/12
Emissions g/km	% P11d value**	Emissions g/km	% P11d value**	Emissions g/km	% P11d value**
120	10	99-120	10	99-120	10
121 – 139	15	121- 134	15	121-129	15
140 – 144	16	135 – 139	16	130-134	16