Policy Update

Budget Submission 2016

Ahead of the Budget in March, the BVRLA has called on HM Treasury to treat company car drivers more fairly. In our submission we have urged the government to carry out a wholesale review of the current system of company car taxation, recognising the benefits these vehicles bring in terms of reduced emissions and tax revenues.
 
In summary, the BVRLA has offered the Government the following recommendations in respect of business car taxation: 
  • Carry out a wholesale review of the current system and levels of company car taxation, recognising the benefits of company cars in terms of reduced emissions and revenue to HM Treasury. 
  • Abolish the 3% diesel supplement on benefit in kind tax bands for Euro 6C cars from 2016. 
  • Reform the benefit-in-kind (BIK) ratings, with greater granularity on incentives for the take-up of lower emission vehicles. 
  • Allow leased vehicles to be eligible for First Year Capital Allowances.
  • Introduce a new tax category for electric vehicles (EVs) where these are taxed on the basis of the length of range (miles travelled before requiring a recharge).
  • Provide in-life incentives to the ultra-low emission vehicles to grow confidence in the (still currently embryonic) second-hand market. This is key in ensuring the roll-out of ULEVs, particularly EVs. 
  • To not erode the benefits of company salary sacrifice arrangements.
  • Provide incentives to the fitment of vehicle safety technology which has a demonstrable effect on road casualties, such as Autonomous Emergency Braking.
The full submission is available here
The covering letter to the Chancellor is available here.
 
Once the Chancellor has delivered his budget on 16th March, the BVRLA will be producing a detailed summary of the key announcements which impact members.