COMPANY CARS which emit high levels of CO2 will be subject to a higher level of tax, HMRC has revealed in a CCT policy paper.
There will be a three percentage point differential between the 0-50 and 51-75g CO2/km bands and between the 51-75g and 76-94g CO2/km bands.
The measure also sets the level of the appropriate percentage for the years 2017 to 2018 and 2018 to 2019 for cars which do not have a registered CO2 emissions figure and which cannot produce CO2.
From 6 April 2017, the appropriate percentage for cars which do not produce CO2 will be set at 9%. This will be increased to 13% by April 2018 and 16% by April 2019.
HMRC predicts that these changes to company car tax will bring in £315m in tax in 2019 to 2020 and £320m from 2020 to 2021.
Fleet management represents both an expense to the business and an investment. Chief financial officers therefore need to establish a business case that demonstrates a sound rationale for investing in fleet management technology
Tax breaks are a very enticing incentive for developing and managing a green management strategy, writes Graham Jarvis
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Large businesses are increasingly ‘low risk’ when it comes to tax planning, says Pinsent Masons, the international law firm