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We've given our customers the ability to search for their new car based on vehicle emissions. But what does this mean?
Emissions of Carbon Dioxide (CO2) is widely regarded as the single biggest contributor to global warming. With around 18% of carbon dioxide emissions coming from passenger cars, the Government is encouraging us to give more consideration to the vehicles we drive based on their impact on the environment. As such the Government aims to reduce vehicle use by taxing drivers in 2 ways: 1) Vehicle Excise Duty The annual Vehicle Excise Duty (road tax) applies to all passenger vehicles (private & company owned) and is based on the vehicle's CO2 emissions and the type of fuel used. Vehicles are classified into 7 bands from A to G based on their CO2 output in grams per kilometre (g/km). These are the bands we have used to enable you to search for a vehicle by emissions. More fuel-efficient vehicles have lower CO2 emissions and so have a lower VED band. The Annual VED is then charged according to the fuel type as shown in the table below. While generally being more fuel efficient, Diesels tend to give off more localised pollution and so are taxed more heavily than the equivalent petrol.
N.B. All brand new and new pre-registered vehicles supplied by Motorlogix include 12 months Vehicle Excise Duty. 2) Benefit in Kind Taxation (on Company Cars only) When a company owned vehicle is made available for the private use of an employee a 'benefit in kind' value is calculated in relation to the vehicle (and the fuel if that is also made available for private use). From 6th April 2002 the Benefit In Kind (BIK) charge for company cars registered after 1st January 1998 has been calculated as a percentage of the car's price and linked to the CO2 emissions. A minimum charge of 15% of the vehicle's price will apply to cars emitting CO2 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%). For diesel cars there is a supplement of 3% up to the maximum charge of 35% on all vehicles registered after the end of 2005. The 2005 budget included the announcement that the threshold for the minimum percentage charge rate would be frozen at 140g/km, up to and including 2007/8. The 2006 budget included an amendment reducing the threshold for the minimum percentage charge from 140g/km to 135g/km for 2008-09. A new lower 10% band for company cars with CO2 emissions of 120g/km or lower was also announced, which will also come into effect in 2008/9. The table below shows the relationship between CO2 emissions and percentage charge. 
A calculation is then made based on the following:
Here is a typical example: 
Finally we've provided a couple of useful links for you below to assist you understand and calculate the tax liability for a particular vehicle: Changes to company car benefit 2006-2007 (PDF) Company Car & Fuel Benefit Calculator COMCAR Company Car Tax Guides |
The list price of the vehicle and its options (before discounts)