HM Treasury has clarified that the £85 million in tax revenue to be generated in the 2011/12 tax year comes from all changes to company car tax, not just the removal of the £80,000 cap on P11D values for benefit-in-kind.
Despite the Budget 2009 document stating the £85m figure only relates to £80,000 cap, a Treasury spokesman told BusinessCar: “The £85 million referred to in Table A1 of the Budget includes the impact of both shifting down the CCT thresholds by 5g/km and removing the expensive cars cap in 2011-12. The majority of the £85m revenue (page 10 of Budget) is raised from the thresholds rather than the expensive cars cap measure, which will affect less than 1,700 vehicles.”
