The 2015 Budget had more than one eye on the General Election in a few weeks’ time as the Chancellor, George Osborne, announced a series of measures designed to continue the feel-good factor for voters ahead of Election day on May 7th.
For fleet operators, there was confirmation of a freeze in fuel duty in September, of a 2% increase in company car tax for the next three years but 3% thereafter, of new tax bands for ultra-low emission vehicles and of a rise in VED in line with inflation in the Chancellor’s sixth, and perhaps final, Budget speech.
The main points of interest for fleets, at a glance:
Fuel duty will not increase by inflation on 1 Sept 2015 and will therefore remain unchanged until 2016
Company Car Tax Rates 2015-18
From April 2015, all company car tax rates increase by 2% up to the end of the 2018/19 financial year.
Ultra Low Emission Vehicles (ULEVs)
The Chancellor announced that BIK rates will rise at a slower rate, for vehicles emitting less than 75g/km CO2, than other cars from 2019/20 for which the annual rise will be 3%.
Car and Van Fuel Benefit Charge 2015-16
From 6 April 2015 the fuel benefit charges will increase by Retail Prices Index (RPI) for both cars and vans. From 6 April 2016, the Fuel Benefit Charge multiplier will increase by RPI.
Van Benefit Charge 2015-16
From 6 April 2015 the main Van Benefit Charge (VBC) will increase by RPI.
Enhanced Capital Allowances and First Year Allowances (FYA)
The 100% FYA for businesses purchasing the lowest emissions vehicles has already been extended until 31 March 2018. The Enhanced Capital Allowance for zero emission goods vehicles is extended to 31 March 2018.
The Chancellor guaranteed £100 million investment for supporting the development of connected cars in the UK.
See what else Mr Osborne has up his sleeve for us at : http://www.bbc.co.uk/news/business-31924791
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