Car Taxation

Since April 2002 company car tax has been based on a car's list price and official C0 2 emission figure.

April 2002 Changes in Car Tax Calculation

The price of the car is calculated as before but the percentage used to calculate the benefit is based on carbon dioxide (CO 2 ) emissions measured in grams per kilometre (g/km).

A minimum charge of 15% of the car's price will apply to cars emitting CO 2 at or below a specific level, measured in (g/km). This charge rises in 1% increments for every 5g/km over the minimum level (there is an upper ceiling of 35%).

Diesel cars: there is a supplement of 3% up to the maximum charge of 35%. This supplement is waived for cars that meet the EC emissions standard known as Euro IV. The Euro Standard is shown on the registration document for cars first registered after 01 March 2001 and is also included in information available in The Car buyers Guide.

The 2005 budget included the announcement that the threshold for the minimum percentage charge rate will be frozen at 140g/km up to, and including 2007-08.

Inland Revenue Car Tax Calculator

AA Car Tax Calculator