New Five will attract high taxes

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BMW’s new 5-series, which goes on sale in September, will face a hard fight to win over company car drivers due to its high emissions levels, What Car? can exclusively reveal.

Emissions figures leaked to What Car? today show that the new Five could struggle against its arch-rival the Mercedes E-class due to its high CO2 output. Every new 5-series model is marginally faster than the equivalent E-class, but will attract more in tax for company drivers.

Worst hit of all is the 530d diesel automatic, which is in the 30% tax band – a lofty seven tax bands higher than the equivalent E320 CDi auto.

Even if the 530d is a full £2200 cheaper than the E-class, with prices starting at around £30,500 as has been predicted, a higher-rate tax payer would have to pay £600 a year more to drive the BMW than the Merc, with a yearly bill of around £3600.

The entry-level 520i has emissions of 219g/km, putting it in the 29% tax band, or five groups above the base E-class. The BMW’s tax bills are therefore likely to be around £400 higher at £2760 a year.

BMW runs Mercedes closest with the 231bhp 530i, a direct rival for the 221bhp E320. Although the Five is likely to be £3000 cheaper than the E-class at an estimated £30,500, tax bills will be almost identical to the Merc’s at around £4125 a year.