Pre-Budget Report 2009 Introduction Personal tax Tax rates and allowances Furnished holiday lettings Pensions and Credits State Pension Rates of tax credit National Insurance Contributions Rates and limits: 2010/11 Rates and limits: 2011/12 Employees Bankers' bonuses Electric cars and vans Cars up to 2012 Car fuel Works canteen Savings Pension contributions Capital Gains Tax Annual exemption and rate Inheritance Tax Rates and threshold Stamp Duty/Stamp Duty Land Tax Extended holiday ends Corporation Tax Rate of tax Business Tax Bank payroll tax Capital allowances Research and development Time to pay Empty property rates relief Value Added Tax Standard rate Flat rate Other Measures Equitable liability Offshore disclosure opportunity Public sector pay and pensions Tax avoidance

Cars up to 2012 The benefit of a company car has been charged for some years using a percentage of the car's list price. This is determined according to the CO2 emissions rating of the car. In 2009/10, cars with a rating of up to 120g/km are taxed at 10% of the list price. Above that a 15% rate applies up to 139g/km; the percentage increases by 1% at 140g/km (i.e. 16%), 145g/km etc. to a maximum of 35%. Diesel cars suffer an addition of 3% to the figure for petrol cars, but are still subject to the same maximum. We have already been told that the 1% increases will start at 135g/km (i.e. 16%) rather than 140g/km in 2010/11, and then at 130g/km in 2011/12, so most company car drivers will see an increase in the tax charge each year even if they are driving the same car. Now we are told that the rules will change again on 6 April 2012 so that the 10% rate will apply up to 99g/km; at 100g/km, 105g/km, 110g/km and so on there will be a succession of 1% increases, rather than a jump straight to 15% at 121g/km. So from that date it will be harder to qualify for the lowest 10% charge, and the 16% level will be reached at 125g/km, representing a further 5g/km tightening of the rules. As decisions taken on company cars may affect the employee's tax position for several years to come, it is important to take into account these tax increases coming over the next three years as well as the current position.