The Telegraph writes that an £80,000 maximum list price cap will be removed, resulting in some executives having to pay nearly four times as much as they are currently shelling out, starting on April 6th.
Under the current regulations the maximum amount an employee had to pay every year for a company-owned car is of £14,000, but with the lifting of the cap a supercar-driving exec will be force to take nearly £40,000 out of his pocket every year.
Among those that will be hit the hardest is Sainsbury's boss Justin King, who is well-known for his love of fast cars and drives a top-of-the-range Lexus. Meanwhile, Carphone Warehouse founder Charles Dunston and Shire Pharmaceuticals chief executive Angus Russell both own large collections of classic cars.
"The super-rich may not worry about the extra tax, but there is a real danger that some drivers of older company-owned supercars could be caught out. You can pick up a 2005 model Ferrari 612 Scaglietti for about £65,000, but as a company car the tax bill is based on its list price of £177,000 - £39,000 of tax and Nation Insurance contributions per year to drive a car worth £65,000 is not very attractive," said David Heaton, a partner at Baker Tilly.
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