Love of loath our government we elect them to make decisions on our behalf and in our best interests and this time the battle lines have been drawn and the company car wars are about to begin.

When it comes to company cars the rules and regulations can be confusing but in a nutshell if you have a company car you will pay additional tax on it. The amount you pay and the amount that your company can offset in their accounts used to depend upon only the purchase price of the company car your where buying. This all changed however when some time back the rules where changed in favour of becoming more envirm=nomentaly friendly and greener, more fuel efficient cars where encouraged. In  fact the lower the environment impact via Co2 emission the less tax had to be paid. In short better for the business owner and better for the company car driver.

This worked better than expected and sales of company cars with a Co2 emission of up to 160g / km dived from 37.7 % in 2008 to a fantastic 15.5 % in 2011. But this was not enough and in the last budget the government lowered the Co2 emission banding’s still further from130g/km to 956/km. This therefore meant that to get the higest elevls of tax brakes the type of company cars we are buying has to change.

So what impact will this have in the company car markets!

Well it should have little or no impact in the super mini sectors but it may have a big impact on the type of executive and luxury company cars we buy.    Manufacturers constantly work to reduce Co2 emissions but this reduction is way over the normal annual reduction of just 4 % and the shock waves will get higher the bigger the company car.

For example at the moment you can not buy a Mondeo sized petrol company car with a Co2 of less than 130g/km. Strangely the New Land Rover Evoque 3 door is 129g / km but the 5 door is 133g / km

So is this latest government budgeting a real company car war in which the environment has been firmly out at the fore front or a knee jerk reaction, as always why not let us know what you think?