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Company car numbers fall, says HMRC

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Aug 2 2012

The amount of company cars has steadily fallen in recent years, dropping from 970,000 taxable ones in 2009/10 to 950,000 in 2010/11.

These estimates from HM Revenue and Customs (HMRC) reveal a fall of more than 20% in eight years from 1.2 million company cars in 2004/05.

The data on Benefit in Kind also revealed risk fleet figures from the FN50 - the top 50 leasing companies by size. They show 990,000 cars were leased in 2011, which is higher than HMRC's estimation.

Leasing firms will have leased out more cars to businesses outside the top 50, and a large number of fleets will buy cars outright, all of which will raise the figure.

The Government's plans for company car taxation have been blamed for the recent fall by Alastair Kendrick, tax director at MHA MacIntyre Hudson LLP.

Mr Kendrick said leasing car costs will go up as capital allowance relief on cars will be adjusted from next April, so cars emitting CO2 above 130 grams (the present level being 160 grams) will get a 15% restriction.

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