FROM April 6, 2002, company car tax changed. It is now based on a percentage of the P11D value of a car, dictated by its emissions of carbon dioxide per kilometre.

There are no discounts for any business miles driven.

##BIKlist--right##The benefit charge is based on a sliding scale, from a minimum of 15% to a maximum of 35% of the P11D value of the company car. Drivers pay tax on the benefit charge at their marginal rate of income tax, either 22% or 40%. The sliding scale increases in increments of one percentage point for every five grammes per kilometre of CO2 emitted. The CO2 emissions figure for a car should be rounded down to the nearest 5g/km.

The sliding scale will tighten in subsequent tax years to encourage company car drivers to select lower emission vehicles.

Diesel cars incur a flat rate three percentage point penalty, unless they meet Euro IV emission standards, although no car will incur a benefit charge above 35% of its P11D value.

For example, a diesel car that qualifies for a tax charge of 20% of its P11D value gives rise to a tax charge of 23% of its P11D value because of the three percentage point diesel penalty, unless it meets Euro IV standards.

The new CO2-based system does not apply to vehicles with no approved C02 rating or older vehicles registered prior to January 1998 for which CO2 data is not known. The taxable benefit for such cars is based on their engine size.

Diesel supplements: *add 3% if a car runs solely on diesel; **add 2% if car runs solely on diesel; ***add 1% if car runs solely on diesel; ****maximum charge so no diesel supplement. NB: Exact CO2 figure should be rounded down to the nearest 5g/km.