Radical changes in company car taxation could leave many drivers fuming.

This is because new taxes will be based on the volume of carbon dioxide vehicles emit.

The change, due to take effect from April 2002, means there will no longer be a reduction for high business mileage or for vehicles over four years old.

Carl Whittaker, senior tax manager at the Keighley office of chartered accountants Horwath Clark Whitehill, said: "A director or employee with a large expensive four-year-old company car could see the amount of tax he pays for the company car treble - something that's probably not yet been generally realised.

"As most cars bought now will still be in use in April 2002, both employees and employers should think about future strategy, review what the taxable benefits are now, then compare them with what they will be when the changes come into effect."

He said many bosses were are now looking for other ways to provide company cars.

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