Company car tax in 2011/12

Electric cars have been granted a zero rate for company car tax as far as 2015. Low emission cars such as plug-in hybrids and range-extended vehicles, with emissions below 75g/km CO2  have also been granted a special low 5 per cent rate from April 2012. Other cars are rated from 10 per cent up to 35 per cent according to their emission levels. Each financial year, these tax ratings adjust to create an incentive to buy or lease the lowest emission vehicles around.

While diesel cars are low CO2 emissions, they often emit higher levels of other gases and as such are subject to a 3 per cent supplement. For 2011, the lowest tax band for ordinary diesels is therefore 13 per cent, while petrols are rated from 10 per cent. This ten per cent banding is currently available for cars emitting up to 120g/km CO2 while in 2012/13 this reduces to cars emitting a maximum of 100g/km CO2.

The 2011 Budget  announced that this ten per cent band would be reserved for cars emitting less than 95g/km from April 2013.  All cars with CO₂ emission levels above this (between 95g/km and 219g/km) will see a 1 per cent increase for every extra 5g/km CO2 from April 2013. 

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

* +3% for diesel cars

Advisory Fuel Rates from March 2011

HMRC has published the latest Advisory Fuel Rates (AFRs) which are valid from 1st March 2011. The changes reflect recent fuel price increases.

The table below provides the latest rates, with the previous ones in brackets. See the HMRC website for full details.

Last updated: March 2011