Budget special: Greening company cars

Further measures to encourage businesses to use ultra-low-carbon cars were announced by George Osborne.

He said the government will freeze company car tax (CCT) for cars emitting less than 95g of CO2 per kilometre (gCO2km) from April 2013.

CCT will rise for all vehicles with emissions of between 95gCO2km and 219gCO2km by 1% from the same date.

This follows the chancellor’s previous announcement that in 2012, CCT will change so cars emitting less than 75 gCO2km will be taxed at 5% of list price; cars discharging less than 99gCO2km 10%; and cars emitting up to 100gCO2km an 11% rate, rising by one percentage point for each 5gCO2km band, to a maximum of 35%.