CLAIMS that the Government is about to make a U-turn on company car tax have been dismissed by the Inland Revenue.

The Sunday Mirror carried a story which said the plan to introduce an emissions-based system in April 2002, which fleets have been preparing for over the last three years, is about to be shelved.

The paper claims Stephen Byers will abolish the new scheme after pressure from big business and car manufacturers, but although Byers' Government role includes transport policy, it does not include taxation.

Mary Braim, policy adviser on employee benefits at the Inland Revenue described the claims as 'complete nonsense'. She said there would be no sudden change to the emissions-based system due to be introduced in April 2002, and there would not be an announcement on company car tax in the Chancellor of the Exchequer's autumn statement later this month.