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Budget 2015: What it means for company car drivers

  • What the Budget 2015 means for company car drivers
  • Company car tax to increase slower for ultra-low-emission cars
  • But rates for other company cars will increase by three percent

George Osborne's 2015 Budget is the last before the General Election in May 2015.

The biggest announcement is the decision to increase the tax rates for Ultra Low Emission Vehicles slower than previously announced, starting in 2019/20. However, tax rates for other cars will increase by three percenage points.

The other news was that the planned fuel duty escalator due in September 2015 has been cancelled. The increase is uusally a penny a litre plus inflation, but the chancellor announced this would not go ahead.

Osborne also announced that there would be an investment of £100m pounds into driverless car technology, as well as spending on the roads infrastructure of £2.3bn that is getting underway.

To find out what the current BIK bands are for the tax years ahead see below.

% of P11D  2014/15 2015/16  2016/17  2017/18 2018/19 
Price CO2 (g/km) CO2 (g/km) CO2 (g/km) CO2 (g/km) CO2 (g/km)
0 0 0 N/A N/A N/A
5 1-75 0-50 N/A N/A N/A
6 N/A N/A N/A N/A N/A
7 N/A N/A 0-50 N/A N/A
8 N/A N/A N/A N/A N/A
9 N/A 51-75 N/A 0-50 N/A
10 N/A N/A N/A N/A N/A
11 76-94 N/A 51-75 N/A N/A
12 95-99 N/A N/A N/A N/A
13 100-104 76-94 N/A 51-75 0-50
14 105-109 95-99 N/A N/A N/A
15 110-114 100-104 76-94 N/A N/A
16 115-119 105-109 95-99 N/A 51-75
17 120-124 110-114 100-104 76-94 N/A
18 125-129 115-119 105-109 95-99 N/A
19 130-134 120-124 110-114 100-104 76-94
20 135-139 125-129 115-119 105-109 95-99
21 140-144 130-134 120-124 110-114 100-104
22 145-149 135-139 125-129 115-119 105-109
23 150-154 140-144 130-134 120-124 110-114
24 155-159 145-149 135-139 125-129 115-119
25 160-164 150-154 140-144 130-134 120-124
26 165-169 155-159 145-149 135-139 125-129
27 170-174 160-164 150-154 140-144 130-134
28 175-179 165-169 155-159 145-149 135-139
29 180-184 170-174 160-164 150-154 140-144
30 185-189 175-179 165-169 155-159 145-149
31 190-199 180-184 170-174 160-164 150-154
32 195-199 185-189 175-179 165-169 155-159
33 200-204 190-194 180-184 170-174 160-164
34 205-209 195-199 185-189 175-179 165-169
35 210+ 200-204 190-194 180-184 170-174
36 N/A 205-209 195-199 185-189 175-179
37 N/A 210+ 200+ 190+ 180+

Find out what the cost of your company car tax is here.