Budget 2011: Company car tax frozen for low CO2 cars

Chancellor George Osborne has announced a freeze on company car tax from April 2013 in a bid to encourage businesses to use ultra-low-carbon vehicles.

The Budget report set out plans for a 1% increase on company car tax for all vehicles with emissions between 95g/km and 219g/km from the same date.

Rates will be frozen for cars emitting less than 95g/km.

David Brennan, managing director, LeasePlan UK, said: “With the announcement that the government will freeze company car tax for cars emitting less than 95g/km from April 2013 and increase tax for carbon dioxide emissions between 95g/km and 219g/km by 1 per cent, fleet managers will now be able to plan long-term strategies that promote environmentally-friendly policies.

“This can only be a good thing that will accelerate the take-up of low carbon vehicles.”

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