Changes from 2014-15
The lower threshold will be reduced from 115g/km to 110g/km.
11 per cent will now apply to cars with CO2 emissions of 76g/km to 94g/km for petrol cars and 13 per cent for diesel cars.
The appropriate percentage will increase by 1 per cent for all vehicles with CO2 emissions between 95g/km and 210g/km, to a maximum of 35 per cent.
Here are some examples of the lower % benefit in kind (BIK) tax:
| Model | List Price | CO2 emissions g/km | BIK % | Tax at 20% | Tax at 40% |
| Audi A3 Hatchback 1.2 TFSI 105 S Line 3dr | £21,655 | 114 | 15% | £650 | £1,300 |
| BMW 1 Series Hatchback 116d ED 3dr | £20,830 | 99 | 15% | £625 | £1,250 |
| Fiat 500 Hatchback 0.9 Twin Air 105 GQ 3dr | £15,260 | 92 | 11% | £336 | £ 672 |
| Ford Fiesta Hatchback 1.6TDCI 95 Titanuim ECOnetic 3dr | £16,345 | 87 | 13% | £425 | £ 850 |
| Hyundai i10 Hatchback 1.0SE Blue Drive 5dr | £ 9,795 | 98 | 12% | £235 | £ 470 |
| Mini Cooper Hatchback 1.5D 3dr | £16,450 | 92 | 13% | £428 | £ 856 |
| Toyota Auris Hatchback 1.8 VVT-I Icon Hybrid 5dr | £20,595 | 84 | 11% | £453 | £ 906 |
| Volvo V40 Hatchback 1.6D2 115ES 5dr | £20,345 | 88 | 13% | £529 | £1,058 |
Of course, the lowest appropriate percentages are still 0 per cent and 5 percent.
The 0% BIK cars are electric, for example BMW i3 Electric Car 127kW Auto Electric drive-train, 5 door, the list price for this is £30,625 but you’ll pay £25,625 with the £5,000 government subsidy.
In addition, these cars also benefit from lower road tax:
Petrol car (TC48) and diesel car (TC49)
| Band | CO2 emission (g/km) | 12 months rate | 6 months rate |
| A | Up to 100 | £ 0.00 | Not available |
| B | 101-110 | £ 20.00 | Not available |
| C | 111-120 | £ 30.00 | Not available |
| D | 121-130 | £110.00 | £60.50 |
| E | 131-140 | £130.00 | £71.50 |