On 2006-08-16 11:56:33 +0100, Tony Bryer said:

On Tue, 15 Aug 2006 17:11:49 +0100 Andy Hall wrote :
Not sure about that. Taxation typically does not alter behaviour to
any great extent for any length of time; the exception being the
Lottery, which seems to attract the gullible.

It has on company cars (which significantly determine the user car mix
3+ years from now) - would 50% or so of BMWs be diesel otherwise?

Different thing though.

The trend from company leased vehicles to car allowance (and typically
personal lease) is a simple cash one that can be worked out.

On the one hand there is company provided car with business mileage,
fuel allowance, personal mileage etc. leading to a certain tax
calculation.

On the other there is car allowance, business, personal use and mileage
claim for fuel. The variables are the combinations of personal and
business miles and the tax implications of those.

All one has to do is to look at a three year period (for personal lease
e.g.) and the trend on company provided car taxation.

At a certain point, they have crossed over or will cross over for most
people. At that point, the decision is for a car allowance, it's not
one of having a car or not.

Obviously it depends on the individual. I have very little UK
business mileage since most of my travel is outside the UK. Thus I
have a very low mileage on a car that I took on personal lease over
three years ago. Consequently, I can extend the lease at a very low
rate for a further two years.
Works for me.