The BVRLA has responded to HMRC’s Leasing: Tax response to accounting changes consultation, calling for simplification on how a leased vehicle is treated for taxation purposes.
Current tax rules fail to incentivise the leasing of ultra-low emitting vehicles and the BVRLA is calling upon government to consider wider cross-government strategies to reduce harmful emissions and improve air quality when making tax rules.
The Government’s recent Industrial Strategy, published last year, focuses on the productivity and earning power of ‘UK Plc’ and ‘Clean Growth’ features as a priority.
BVRLA members and their customers can help to deliver this if they are able to use tax incentives which encourage take-up of cleaner vehicles.
The consultation was launched by HMRC to ensure that the tax regime is aligned to the new lease accounting standard IFRS16, which is due to take effect on 1st January 2019.