Fleet News

Cash-for-car scheme for Pharmacia

FAST-growing pharmaceutical company Pharmacia has introduced a £14.6 million structured cash-for-car scheme for its 650 company car drivers.

The new scheme, run by First National Vehicle Holdings (recently bought by Lloyds TSB autolease), protects Pharmacia employees from benefit-in-kind taxation, and will be the basis for combining two different fleet policies following a merger.

In future, Pharmacia drivers will technically own their company cars and thereby avoid paying BIK tax on the vehicles.

They will also be able to take advantage of Pharmacia's buying power and drive vehicles covered by a maintenance policy and accident management services.

In an interview with Fleet News last June, Pharmacia's fleet manager Lee Corrigan said he would look for an alternative fleet funding arrangement for his drivers so they would avoid paying company car tax.

Speaking of the new arrangement last week, he said: 'We were impressed by FNVH's speed of service and range of solutions.'

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