Seat Ibiza immune to company car tax hike

Company car tax – or benefit-in-kind tax – is a levy on all company cars based on CO2 emissions. In the latest budget, Chancellor of the Exchequer George Osborne announced plans to increase the rate of tax on all but the most environmentally friendly cars.

Currently, all cars with CO2 emissions between 99g/km and 120g/km qualified for the lowest rate of BIK tax of 10 per cent for petrol and 13 per cent for diesel models.

From April 2013, the lowest rate of tax will apply to cars with CO2 emissions below 95g/km instead, meaning many company cars will be more expensive to run.

However, the Seat Ibiza E Ecomotive, the lowest emitting car in the range, boasts CO2 emissions of 92g/km from its 1.2-litre TDI 75bhp engine.

This qualifies the Ibiza for a company car tax rate of 13 per cent when the new bands come into effect.

Seat UK Head of Fleet & Business Sales, Nick Andrews, said: "The Ibiza E Ecomotive range is proving increasingly attractive to a wide variety of our customers with, in particular, the ST version making great inroads thanks to its practicality and style.

"The revisions to company car tax arrangements announced by the Chancellor this week will only serve to strengthen the Ibiza’s case with business customers who, understandably, are watching every penny at the moment."

The improved aerodynamics of the new model, technology such as Stop-Start and more the frugal engine deliver fuel economy at the top of the supermini segment at 80.7mpg.

Business users can choose between five-door hatchback, sports coupe and estate (Sport Tourer) body styles, with prices starting from £13,490 for E Ecomotive versions.

The E Ecomotive signature applies to each model in the Seat range to offer the best fuel economy and lowest CO2 emissions. E Ecomotive versions of the Leon, Altea, Altea XL and seven-seat Alhambra MPV are also available.