Readers will be aware that F(No.2)A 2008 introduced revised rules for the calculation of the benefit-in-kind (BIK) arising on the provision of a company car. From 1 January 2009 the BIK is to be determined by applying a percentage based on the level of car CO₂ emissions to the Original Market Value (OMV). The effective date for the implementation of these revised rules was subject to Ministerial Order. In response to recent queries raised by members on the implementation of the CO₂ emission basis for determining the car BIK, we confirmed with the Department of Finance that the Minister has not yet signed the Order effecting the implementation of these revised rules. We understand this is still the position at the time of writing.

Readers will also be aware that Finance Act 2008 introduced a similar scheme for capital allowances in respect of company cars whereby the availability of allowances is by reference to CO₂ emissions. It should be noted that these new rules apply to all cars purchased on or after 1 July 2008. Similarly, since 1 July 2008 the availability of expenses for business cars is determined by CO₂ emissions.