Company Cars and Vans – Car benefit charge

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From April 2010, as already announced, there is a reduction for a five-year period in the “appropriate percentage” for electric cars, from 9% to 0%, starting from April 2010.  There will be no tax charge for employees and no Class 1A NICs charge for employers.

The 2010 Budget announces that

• the 0% charge for the five-year period, instead of being defined as applying to “electrically-propelled vehicles”, will apply to “vehicles that cannot produce more than 0g/km under any circumstances when driven”, including both cars and vans.
• a corresponding five-year reduction in the car benefit charge, 5% instead of 10%, will apply to “ultra-low carbon” vehicles, i.e. those with an approved CO2 emission figure of 75g/km or less.

Further information:

Budget 2010 Note BN43

This entry was posted on Thursday, April 1st, 2010 at 10:53 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.