Discount to taxable benefit for company cars capable of running on bioethanol.
The taxable benefit regime for employer-provided cars changed in April 2002 so it is calculated on between 15% and 35% of the list price in 1% increments related to CO2 emissions. From 6 April 2008, there will be a 2% discount to these percentages for company cars which are capable of being run on "E85 Fuel" (fuel containing at least 85% bioethanol).
For employees provided with free or cheap fuel, the benefit is calculated by applying the above percentage to a pre-set figure known as the multiplier. The multiplier for 2006/07 was £14,400 and it will be frozen for 2007/08.
If you would like further information on this issue, please contact Guy Abbiss
, Tracey Horne
or Colin Kendon