Budget 2008 Introduction Personal Income Tax Tax Credits National Insurance Contributions Employees Savings Capital Gains Tax Inheritance Tax Stamp Duty Land Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

Employees Company cars and fuel (Table C) The taxable benefit on most company cars will increase slightly for 2008/09, because the level of CO2 emissions on which the minimum 15% charge is based drops to 135g/km from 140g/km. This means that the charge for most cars will increase by 1% of the original list price - unless they were already on the maximum (35%), or are still below the minimum. 3% is still to be added to the CO2-based figure for diesel cars. Cars with an emissions rating of up to 120g/km will now qualify for a special low tax charge of only 10% of the list price. There will be a more significant increase in the tax charge on the benefit of free fuel provided by an employer for private motoring in a company car. The same percentage rate applies as for the car benefit itself, but the fixed figure it is multiplied by rises from £14,400 to £16,900. The taxable benefit on a car with a 135g/km rating has therefore risen from £2,160 to £2,535, and the maximum benefit has risen from £5,040 to £5,915 (a 17% increase). Over the next few years, there will also be changes in vehicle excise duty and other measures to encourage the use of lower emission cars. Tax Tip Consider the future tax rates when choosing a company car. Enterprise Management Incentives This tax-favoured employee share option scheme has up to now been restricted to shares with a value of £100,000 and companies with a gross asset value of up to £30m. For options granted from 6 April 2008, the value limit rises to £120,000. A new restriction on the size of the company - fewer than 250 employees - will apply from Royal Assent to the Finance Act, probably at the end of July.