Company car tax will see the biggest shake-up since 2002, when the CO2 banding system was introduced.

From April 2012 the new CO2 banding system will see cars with less than 100g/km qualifying for the lowest 10% BIK band.

The bands will then rise in 5% increments meaning cars with CO2 emissions of 100g/km to 104g/km will be in the 11% band and so on.

This tightening of the banding will mean a car currently in the 15% tax band with emissions of between 135-139g/km will see their tax band jump to 18%.

The maximum 35% tax band will now apply to vehicles with emissions of 220g/km or more.

The Chancellor did not make clear if the 3% diesel surcharge would still apply.

Benefit-in-kind CO2 bands 2012-13
% of P11D price 2012/13g/km
10 sub-100
11 100
12 105
13 110
14 115
15 120
16 125
17 130
18 135
19 140
20 145
21 150
22 155
23 160
24 165
25 170
26 175
27 180
28 185
29 190
30 195
31 200
32 205
33 210
34 215
35 220

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