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BIK tax levels confirmed for 2012

  • BIK tax threshold to start at up to 100g/km
  • Graduated increases to 120g/km
  • 35 per cent bracket reduces to 220g/km

Company car tax bands will tighten over the next few years and will be graduated between 100g/km and 120g/km from 2012.

It means any driver choosing a company car with emissions between 120g/km and 225g/km next year, will see an increase in their annual BIK charge during their term with their vehicle.

At present, petrol cars with CO2 emissions up to 120g/km are taxed at 10 per cent of their P11D value, while diesel cars with similarly low levels of emissions face a charge at 13 per cent.

While these bands remain the same for the next two years, from April 2012 cars with CO2 emissions up to 100g/km will be taxed at 10 per cent, rising to 11 per cent for cars from 100-104g/km and in one per cent increments for every 5g/km up to 225g/km and 35 per cent.

However, other tax bands undergo progressivly lower CO2 thresholds each year. For example a car with emissions of 145g/km currently in the 17 per cent tax bracket, would become an 18 per cent car from April 2010, 19 per cent from April 2011 and 20 per cent in April 2012.

The new levels, confirmed in the Pre-Budget Report, also stated that there would be 5g/km reductions in thresholds after 2012, although there was no word on the future of the three per cent diesel supplement.

 

Benefit-in-kind

% of P11D

09/10

g/km

10/11

g/km

11/12

g/km

12/13

g/km

10 120 120 120 0-99
11 n/a n/a n/a 100
12 n/a n/a n/a 105
13 n/a n/a n/a 110
14 n/a n/a n/a 115
15 135 130 125 120
16 140 135 130 125
17 145 140 135 130
18 150 145 140 135
19 155 150 145 140
20 160 155 150 145
21 165 160 155 150
22 170 165 160 155
23 175 170 165 160
24 180 175 170 165
25 185 180 175 170
26 190 185 180 175
27 195 190 185 180
28 200 195 190 185
29 205 200 195 190
30 210 205 200 195
31 215 210 205 200
32 220 215 210 205
33 225 220 215 210
34 230 225 220 215
35 235 230 225 220
CO2 bands by year. Add 3% for diesel up to 35 %.