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www.luxurymotors.com

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www.vnunet.com

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A prestigious, expensive and good-looking motor has been part of most directors' overall package for decades now, and Mr Brown's latest initiative does not look as if it will have much impact at the top end of the company car market.
Consequently, while the rest of the workforce is downsizing to ensure the taxman doesn't empty their pockets completely, many directors will still opt for favourites such as the S-Class Mercedes, BMW 5-Series and Jaguar XJ8.
What's more, there's no need to feel hard done by while driving what is the only diesel-powered luxury car on the UK market.
And who wouldn't be tempted, with guarantees of no insurance complications, maintenance or resale worries - especially when there is the added justification that a luxury car can be a vital part of executive remuneration and will help impress customers?However, if everyone else in the company is expected to get used to something in which luxury, size and performance will be compromised, FDs should be ready to play their part, too.
Indeed, it's predicted that thousands of top executives who saw previous tax changes as a reason to get rid of their prized company cars will be returning to the fold.
Executive cars - affordable luxury
But its smaller engine and light aluminium body shell gives better fuel economy than its competitors, making it another (slightly) cheaper alternative to the Mercedes.

It is also the only luxury car with four-wheel drive, and recent revisions have improved ride quality and handling over earlier models.
Like the other luxury cars here, it lands in the 35% tax band, although its list price of makes the annual tax demand a reasonable giving a bill of for the first three years of the new scheme.
Abby Jones is consumer reporter at WhatCar? magazine, Financial Director 05 Apr 2002 Traditionally, finance directors have chosen their company cars from the executive and luxury sectors and have been heavily penalised for it.
But if you really don't fancy going down the diesel route, one of the cheapest ways to luxury motoring is the Jaguar XJ8 3.
At this sleek British car will cost a company car driver #5,008 in each of the first three years of the new tax scheme.
As a result, there's one question, which every FD should be ready to answer: can you justify the car you've chosen in today's environmentally-aware, fuel-saving climate and in the light of these BIK tax changes? The best strategy here would be to demonstrate your awareness of how the situation affects everyone, and choose your next vehicle based not only on the image you and the company need to present, but also, as far as possible, on those all-important green credentials.
The government has weighted the new scheme so that the thresholds for the percentage bands of carbon-dioxide emissions are lowered further in the tax years 2003 and 2004 - and it makes sense for directors to lead by example and consider their company car choice carefully.
But the budget-watching, carbon-dioxide-aware executive needn't exclude Mercedes' luxury car altogether.
8 Quattro is also in the highest tax band, so it costs a company exec around per tax year.
Company car tax in the past favoured the high-mileage reps and salesmen, while those at the top end of the company hierarchy, the so-called perk drivers, paid dearly.
However, the new carbon-dioxide-based tax means those directors who choose to stick with their luxury V8s are unlikely to be worse off than they were.
Executive cars - affordable luxury The tough new tax on carbon-dioxide emissions has lead many to think the days of the luxury company car are numbered.
The Mercedes S-Class has long been one of the finest luxury cars on the market and, in its latest incarnation, is a leading candidate for best saloon in the world.
Nevertheless, for drivers of the Mercedes S-Class and its ilk, there are tax-efficient alternatives that won't cost the earth.

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