Chancellor announces rises in Van benefit and fuel benefit in March Budget

Date: Thursday, March 19, 2015   |   Author: James Dallas

The chancellor George Osborne announced a number of measures in his March Budget that affect LCV operators.

Osborne confirmed that both the van benefit charge and fuel benefit charge multiplier will rise from 6 April 2015 to £3,150 and £594 from £3090 and £581 respectively.

From April 2016 the taxes paid on private fuel and for private use of a van will increase in line with the Retail Price Index, and both will be introduced via secondary legislation later this year in time for tax coding in January 2016.

The Government has also confirmed that the zero van benefit charge on zero-emission vehicles will end in April 2016. For the 2016/17 tax year it will be 20% of the van benefit charge figure for regular vehicles, rising by 20 percentage points per year thereafter until a 10 percentage point rise to 90% in 2019/20 before the zero-emission benefit is removed completely in April 2020. At that point there will be a standard van benefit charge for all vehicles. 

Osborne cancelled the scheduled September 2015 increase in fuel duty of 0.54 pence per litre. By the end of 2015-16, fuel duty will have been frozen for five years, the longest freeze for more than two decades.



Share


Error loading MacroEngine script (file: RelatedLinks.cshtml)

View The WhatVan Digital Edition