Every new UK vehicle has an official CO2 figure, which appears on the logbook and is essential when calculating your tax liability.

The current taxation system is based on the amount of CO2 emitted by the vehicle you drive. The lower the CO2 the less tax you pay.

The CO2 emission scale charges used to calculate company car benefit have been increased for 2008/09; with the threshold for the minimum charge rate for calculating benefit-in-kind on company cars reduced from 140g per kilometre to 135g per kilometre. A new lower 10% band will be introduced from the 1st of April 2008 for company cars with CO2 emissions of 120g per kilometre or less.

Please visit the Vehicle Certification Agencies website www.vca.gov.uk to check the emission rating of your chosen vehicle before calculating your tax liability.

CAR TAXATION SCALE OF CHARGES

g/km	Taxable % of list price 2006/07 to 2007/08	Taxable % of list price 2008/09
135#	15*	15*
140	15*	16*
145	16*	17*
150	17*	18*
155	18*	19*
160	19*	20*
165	20*	21*
170	21*	22*
175	22*	23*
180	23*	24*
185	24*	25*
190	25*	26*
195	26*	27*
200	27*	28*
205	28*	29*
210	29*	30*
215	30*	31*
220	31*	32*
225	32*	33**
230	33**	34***
235	34***	35
240	35	35

# Vehicles with 120g/km or less will be taxed at a rate of 10% of the list price

Diesel supplements:   * add 3%   ** add 2%   *** add 1%

Diesel supplement waived if Euro IV emission standard met and the vehicle is registered before 1 January 2006

ALTERNATIVE FUELS

Fuel type	Discount applicable to scale charge 2006/07
Electric	6%
Hybrid petrol/electric (registered on or after 1/1/98)	3%
LPG/CNG (gas only) registered on or after 1/1/98)	2%
Bi-fuel (type-approved) (registered on or after 1/1/00)	2%

CARS WITHOUT AN APPROVED CO2 FIGURE

Engine Size	Pre 1/1/98 car	1/1/98 or later car
1,400cc or less	15%	15%*
1,401cc – 2,000cc	22%	25%*
Over 2,001cc	32%	35%

* 3% diesel surcharge applies

COMPANY VAN TAXATION

Tax year	Scale charge £
2006/07	£500*
2007/08	£3,000#

* Reduced to £350 if van is over four years old at end of tax year.

# Further £500 charge if private fuel also provided.

MILEAGE RATES

Approved mileage rates for private cars (pence per mile)

Engine size	Up to 10,000 miles	Excess over 10,000 miles
All cars	40p	25p