In his April 2012 Budget speech, chancellor George Osbourne also confirmed that from April 2015, the five year exemption from the FBC for zero carbon emitting vans will expire, as legislated in the Finance Act 2010.

Under the current system operators using commercial vehicles with a payload of at least 1000kg for private as well as business use are taxed on just £3000 of the van’s value – resulting in a £600 bill for those on the 20% rate or a £1200 charge for those on 40%.

In contrast company cars are taxed on a percentage of the model’s list price, dependant upon its C02 output.

The chancellor has also frozen the Van Fuel Benefit Charge (FBC) for a year from 6 April 2012 at its current rate of £550. From April 2013 the FBC will increase in line with the Retail Price Index (RPI).

The Government has committed to pre-announcing the FBC multiplier one year ahead.