Company Cars
Capital allowances
| Motor cars |
| On reducing balance (max. £3,000 p.a. per car) |
20% |
New cars emitting not more than 110g/km CO2
registered 17 April 2002 - 31 March 2013
See notes below |
100% |
Note;
- 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 benefit
A new lower rate of 10% (13% for diesels) of the list price for cars with CO2 emissions of 120 grams per kilometre or less will have effect on 6 April 2008.
From 6 April 2008 the emissions level that will qualify a car for a benefit of 15% of the list price reduces to 135g/km CO2. On 6 April 2010 the level reduces again to 130g/km CO2.
The threshold CO2 emissions rate is reduced to 135 g/km from 6 April 2008. The rate of the taxable benefit ranges from 10% to 35% of list price (plus certain accessories) for most petrol or diesel-powered cars.
You can find your taxable percentage of the list price for 2008/09 using the following table:
2008/09 taxable benefits table
| CO2 in g/km* |
Taxable % |
CO2 in g/km* |
Taxable % |
| Petrol |
Diesel |
Petrol |
Diesel |
| Less than 121 |
10% |
13% |
185 to 189 |
25% |
28% |
| 121 to 139 |
15% |
18% |
190 to 194 |
26% |
29% |
| 140 to 144 |
16% |
19% |
195 to 199 |
27% |
30% |
| 145 to 149 |
17% |
20% |
200 to 204 |
28% |
31% |
| 150 to 154 |
18% |
21% |
205 to 209 |
29% |
32% |
| 155 to 159 |
19% |
22% |
210 to 214 |
30% |
33% |
| 160 to 164 |
20% |
23% |
215 to 219 |
31% |
34% |
| 165 to 169 |
21% |
24% |
220 to 224 |
32% |
35% |
| 170 to 174 |
22% |
25% |
225 to 229 |
33% |
35% |
| 175 to 179 |
23% |
26% |
230 to 234 |
34% |
35% |
| 180 to 184 |
24% |
27% |
235 and over |
35% |
35% |
| * The exact CO2 figure is rounded down to the nearest 5g/km |
The discounts for lower emissions vehicles are:
- 2% for bi-fuel lpg and petrol cars manufactured or converted before type approval
- 2% for cars able to run on E85 fuel (type G cars)
- 3% for hybrid electric and petrol cars
- 6% for electric-only cars.
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Car fuel benefit
The multiplier for car fuel benefit has increased to £16,900.
Car and fuel benefit calculation
The amount chargeable to income tax (user) and Class 1A national insurance contributions (employer) for 2008/09 is calculated by multiplying list price (car benefit) or the fuel multiplier (fuel benefit) by a percentage based on the rate at which the car emits carbon dioxide (CO2 in g/km) (see table above).
Take a car with a list price of £18,000 when it was first registered (say 31 March 2008) and which emits carbon dioxide at a rate of 176 g/km.
| Car benefit |
Petrol |
Diesel |
| List price |
£18,000 |
£18,000 |
| Taxable percentage |
23% |
26% |
| Taxable benefit |
£4,140 |
£4,680 |
| Tax (20% taxpayer) |
£828 |
£936 |
| Tax (40% taxpayer) |
£1,656 |
£1,872 |
| Employer’s Class 1A NIC |
£530 |
£599 |
| Fuel benefit |
Petrol |
Diesel |
| Multiplier |
£16,900 |
£16,900 |
| Taxable percentage |
23% |
26% |
| Taxable benefit |
£3,887 |
£4,394 |
| Tax (20% taxpayer) |
£777.40 |
£878.80 |
| Tax (40% taxpayer) |
£1,554.80 |
£1,757.60 |
| Employer’s Class 1A NIC |
£497.54 |
£562.43 |
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VAT fuel scale charges
VAT fuel scale charges for 1 month period
| CO2 band g/km |
VAT fuel scale charge
1 month period |
VAT on
1 month charge |
VAT exclusive
1 month charge |
| 120 or less |
46.00 |
6.85 |
39.15 |
| 125 |
69.00 |
10.28 |
58.72 |
| 130 |
69.00 |
10.28 |
58.72 |
| 135 |
69.00 |
10.28 |
58.72 |
| 140 |
73.00 |
10.87 |
62.13 |
| 145 |
78.00 |
11.62 |
66.38 |
| 150 |
82.00 |
12.21 |
69.79 |
| 155 |
87.00 |
12.96 |
74.04 |
| 160 |
92.00 |
13.70 |
78.30 |
| 165 |
96.00 |
14.30 |
81.70 |
| 170 |
101.00 |
15.04 |
85.96 |
| 175 |
105.00 |
15.64 |
89.36 |
| 180 |
110.00 |
16.38 |
93.62 |
| 185 |
115.00 |
17.13 |
97.87 |
| 190 |
119.00 |
17.72 |
101.28 |
| 195 |
124.00 |
18.47 |
105.53 |
| 200 |
128.00 |
19.06 |
108.94 |
| 205 |
133.00 |
19.81 |
113.19 |
| 210 |
138.00 |
20.55 |
117.45 |
| 215 |
142.00 |
21.15 |
120.85 |
| 220 |
147.00 |
21.89 |
125.11 |
| 225 |
151.00 |
22.49 |
128.51 |
| 230 |
156.00 |
23.23 |
132.77 |
| 235 or more |
161.00 |
23.98 |
137.02 |
VAT fuel scale charges for 3 month periods
| CO2 band |
VAT fuel scale charge
3 month period
£ |
VAT on
3 month charge
£ |
VAT exclusive
3 month charge
£ |
| 120 or less |
138.00 |
20.55 |
117.45 |
| 125 |
207.00 |
30.83 |
176.17 |
| 130 |
207.00 |
30.83 |
176.17 |
| 135 |
207.00 |
30.83 |
176.17 |
| 140 |
221.00 |
32.91 |
188.09 |
| 145 |
234.00 |
34.85 |
199.15 |
| 150 |
248.00 |
36.94 |
211.06 |
| 155 |
262.00 |
39.02 |
222.98 |
| 160 |
276.00 |
41.11 |
234.89 |
| 165 |
290.00 |
43.19 |
246.81 |
| 170 |
303.00 |
45.13 |
257.87 |
| 175 |
317.00 |
47.21 |
269.79 |
| 180 |
331.00 |
49.30 |
281.70 |
| 185 |
345.00 |
51.38 |
293.62 |
| 190 |
359.00 |
53.47 |
305.53 |
| 195 |
373.00 |
55.55 |
317.45 |
| 200 |
386.00 |
57.49 |
328.51 |
| 205 |
400.00 |
59.57 |
340.43 |
| 210 |
414.00 |
61.66 |
352.34 |
| 215 |
428.00 |
63.74 |
364.26 |
| 220 |
442.00 |
65.83 |
376.17 |
| 225 |
455.00 |
67.77 |
387.23 |
| 230 |
469.00 |
69.85 |
399.15 |
| 235 or more |
483.00 |
71.94 |
411.06 |
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VAT fuel scale charges for 12 month periods
| CO2 band |
VAT fuel scale charge
12 month period
£ |
VAT on
12 month charge
£ |
VAT exclusive
12 month charge
£ |
| 120 or less |
555.00 |
82.66 |
472.34 |
| 125 |
830.00 |
123.62 |
706.38 |
| 130 |
830.00 |
123.62 |
706.38 |
| 135 |
830.00 |
123.62 |
706.38 |
| 140 |
885.00 |
131.81 |
753.19 |
| 145 |
940.00 |
140.00 |
800.00 |
| 150 |
995.00 |
148.19 |
846.81 |
| 155 |
1,050.00 |
156.38 |
893.62 |
| 160 |
1,105.00 |
164.57 |
940.43 |
| 165 |
1,160.00 |
172.77 |
987.23 |
| 170 |
1,215.00 |
180.96 |
1,034.04 |
| 175 |
1,270.00 |
189.15 |
1,080.85 |
| 180 |
1,325.00 |
197.34 |
1,127.66 |
| 185 |
1,380.00 |
205.53 |
1,174.47 |
| 190 |
1,435.00 |
213.72 |
1,221.28 |
| 195 |
1,490.00 |
221.91 |
1,268.09 |
| 200 |
1,545.00 |
230.11 |
1,314.89 |
| 205 |
1,605.00 |
239.04 |
1,365.96 |
| 210 |
1,660.00 |
247.23 |
1,412.77 |
| 215 |
1,715.00 |
255.43 |
1,459.57 |
| 220 |
1,770.00 |
263.62 |
1,506.38 |
| 225 |
1,825.00 |
271.81 |
1,553.19 |
| 230 |
1,880.00 |
280.00 |
1,600.00 |
| 235 or more |
1,935.00 |
288.19 |
1,646.81 |
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