Summer Budget 2010 - Employees

Employees

Company cars and fuel (Table C)

No further changes were announced to the taxation of company cars, following the significant programme of measures included in the March Budget. Electric cars now give rise to no taxable benefit on either the car itself or the charging of the batteries. Very low emission petrol cars (up to 75g/km) will be taxed at 5% of the list price. Tax charges then increase to a maximum of 35% of the list price at ratings of 230g/km (petrol engines) or 215g/km (diesel engines). The levels at which the percentages increase will be lowered in future years. The chargeable amount on a company van remains at £3,000 (if private use is more than travel between home and work).

The taxable benefit of free fuel provided for use in a company car remains based on £18,000 for 2010/11. When multiplied by the same percentage as the list price for the car, this gives a chargeable figure of between £900 (at 5%) and £6,300 (at 35%). The chargeable figure for free fuel in a company van remains £550.