A new system for taxing car benefits starts on 6th April 2002, linking the tax charge on the benefit of a company car to emissions ( CO₂ ) emissions. The new system will also apply for the purposes of calculating employer's Class 1A NICs.

For further information on the taxation changes, please visit the Inland Revenue website.

150 CO₂ or under: @15% of new car price. After this figure tax increases by 1% every 5 CO₂ to a maximum of 35% of new car price. (Subject to mileage covered.)

Plus 3% for Diesel cars subject to the maximum of always being 35%.
Road Fund License fees have also changed dependent on engine size and emissions. Some examples are listed below. For further information on other vehicles, visit http://www.vcacarfueldata.org.uk