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Green fuels

March 7, 2011

All company cars that run on something other than petrol or diesel currently attract a discount in the percentage of list price used to calculate the car benefit. Hybrid electric/petrol cars qualify for a 3% discount, and LPG cars are given a 2% discount. All such discounts are abolished from 6 April 2011, and the regular 1% increase in list price percentages will apply to all cars with CO2 emissions of 130g/km or more. This could have a significant effect on the taxable benefit for larger hybrid cars.

Changes to company car benefit from 2011/12       

http://www.hmrc.gov.uk/budget2009/bn64.pdf