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U.K. Corporate Fleets Will Face Tax Hike in April

January 23, 2013

A new tax on emissions that is set to go into effect in the UK in April could change the types of vehicles company drivers will be allowed to drive, according to an article in the Telegraph.

Currently, vehicles with emissions ratings of 160 g/km or lower can be written off against taxable profits, but the rate will drop to less than 130 g/km or less, meaning, that the types of models companies will allow their employees to chose will be restricted to these new categories.

In the UK, taxable rates for employee vehicles are determined by a number of factors, including CO2 output and vehicle fuel type compared to the total price paid minus road tax and registration. These determine the tax rate for the vehicle. In the new tax scheme, vehicles emitting 95-99 g/km will see an increase of one percent to 11 percent for gasoline and 14 percent for diesel models respectively.

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