Government adds £140m to car tax haul

Company-owned diesels to lose three per cent tax advantage

By PH Staff / Tuesday, 14 December 2004 / Loading comments

If you drive a diesel-powered company car, be prepared to pay more. That's because, buried in the detail of Chancellor Gordon Brown's pre-budget statement, was the abolition of the three per cent tax advantage that diesel drivers currently enjoy.

Should Labour win the next election, due next year, the change will affect all company cars registered after January 2006, and come into force from April 2006, according to this week's Autocar magazine. It will net the government an extra £40m that year, with a full £100m the year after. for example, the driver of a standard BMW 320 ES will pay an additional £750 in extra tax over three years.

More here: www.autocarmagazine.co.uk/News_Article.asp?NA_ID=212627