Company car tax rates will increase by one percentage point in April 2014, and then by two percentage points in April 2015 and April 2016. The diesel 3% premium will cease, but not before April 2016. This is after the rates increase by 1% in April 2012 and 2013. So rather than cutting the diesel penalty, the Chancellor is increasing the tax percentages on petrol to bring the two in line without losing tax revenues.

Accessories fitted as security features with the purpose of meeting a threat to the employee's personal security arising mainly because of the nature of their employment will not be subject to company car tax from April 2011. Examples given are armour plating, bullet-resistant glass, and fuel tank protection but any relevant security feature could be included.

In a blow to electric and low emission cars, all incentives cease in April 2015. The lowest available percentage for electric and ICE cars up to 94gms CO2 will be 13% of list price, rising to 15% in 2016.

Fuel benefit will increase by 7.4% in April 2012, and will continue to rise over the following two years by 2% above the RPI. The figure for 2012/13 is £20,200. The Comcar database will add 2% each subsequent year so that users get the idea that the fuel benefit multiplier will increase, though the final figures will also be inflated by the RPI. The full amount of the FBC multiplier will be announced by the Government a year ahead.

Tax on company van private use and fuel is unchanged. The salary equivalent for significant private van use remains at £3,000 for the vehicle and £550 for fuel.

VED rates on cars and LCVs will increase on 1st April 2012. This alone will not affect Company Car Tax but all manufacturers will need to issue new price lists. This could then be an opportunity for general price increases.

100% First-year allowances (FYAs) on purchase of low emission cars will be extended from April 2013 to March 2015, though the eligibility threshold drops from 110 to 95 grams. Leased business cars will no longer be eligible. Also from April 2013 the CO2 emissions threshold for the main rate of capital allowance will drop from 160 grams to 130 grams. Likewise the threshold for the lease rental resriction will also fall to 130 grams per kilometer from April 2013.