ONE in 14 drivers will decide to give up their company car because of extra tax they face from next April, Lex Vehicle Leasing predicts.

But there will be an overall increase of around 400,000 company cars over the next few years.

That's double the amount estimated by the Inland Revenue.

One in six say they will no longer bother to run a company car, while 40 per cent intend to choose a smaller engine, bringing lower emissions.

Lex says 50 per cent are aware that diesel engines will be taxed more heavily than petrol engines.

While 40 per cent support the changes, only 16 per cent feel they will benefit.