Pre-Budget Report: Fleet briefing from The Energy Saving Trust
Pre-Budget Report Mini-Guide
The Pre-Budget Report (PBR) on the 9th December announced further tightening of Company Car Tax (CCT) bands and Fuel Benefit charges, while the electric vehicle industry has been given additional support through the taxation system.
Increases to fuel duty and the differential first-year rates of vehicle excise duty (VED) previously announced provide further incentives to review your fleet vehicle policies to ensure costs are controlled and emissions minimised.
There will be further analysis of the implications of this PBR in the January Fleet Briefing, however this mini-guide is designed to highlight those areas which you need to consider if you plan to revise your company vehicle policy or replace cars or vans in the New Year.
Company Car Tax
The 2009 budget indicated that in 2012 the government intends to extend the system of benefit-in-kind tax rates such that they increase by 1% for each 5g CO2 / km increase in emissions from 10 %. This has been confirmed in the PBR and from April 2012 the 10% rate will apply to cars emitting 99g CO2 / km or less replacing the current 10% band at 120g CO2/km.
A Company Car Benefit in Kind Taxation table which clarifies this change will feature in next months Fleet Briefing.
Fuel Benefit Charge
For cars, the fuel benefit charge has been increased from £16,900 to £18,000 from 6th April 2010, and from £500 to £550 for vans. If you are still providing private use fuel for your employees this could be a good time to review this policy.
Electric vehicles
To encourage the purchase of electric vehicles by businesses, electric cars will be exempt from CCT and electric vans from van benefit charge for five years from April 2010. Additionally, a 100% first year capital allowance will be provided for the purchase of electric vans from April 2010, subject to compatibility with state aid rules. Electric cars already qualify.
This Fleet Briefing does not constitute financial or other professional advice. You should always consult your professional advisors. Click here to read our data policy and terms of use.
Source: The Energy Saving Trust
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