Philip Hammond - Chancellor of the ExchequerThe 2019 Budget, delivered this afternoon by chancellor Philip Hammond, was one without huge consequences for the UK company car and business travel marketplace. Here are the main points:

 

  • The impact of WLTP changes on company car benefit-in-kind and vehicle excise duty rates will be reviewed, with a report due in the spring. That means the BIK rates are currently only set until the end of the 2020/21 tax year, meaning drivers taking a company car at that point will have just over 24 months of visibility about what will be happening with their tax bills.

 

  • Fuel duty was frozen for a ninth successive year, with the Government claiming a cumulative saving of over £1000 for the average driver, and £2500 for the average van driver.

 

  • Enhanced capital allowances for electric vehicle charge points have been extended to 31 March 2023. It had previously been due to expire in April 2021.

 

  • A new fund of £420m is to be allocated in this financial year to local authorities to tackle potholes and keep bridges maintained.

 

  • A £150m fund is also being made available to support local authorities in small improvement projects such as roundabouts to ease congestion on local routes.

 

  • From April 2019, VED rates on cars, vans and motorcycles will rise in line with the Retail Price Index.

 

  • Van benefit will increase in line with the CPI, and company vehicle fuel benefits charges will increase in line with RPI from 6 April 2019.

 

  • The Government will “shortly” publish a summary of responses from consultation on VED reform for light commercials regarding proposals to introduce environmental incentives from April 2021. Bands and rates will be set out ahead of the 2019-20 Finance Bill.

 

  • A VED exemption for purpose-built blood bikes will be introduced from April 2020.

 

  • A £90m National Productivity Investment Fund will be created for the Transforming Cities Fund to create Future Mobility Zones with the intention of trialling new transport modes, services, and digital payments and ticketing. £20 million of this will be allocated to the West Midlands.

 

  • From April 2019, the writing down allowance on company cars over 130g/km bought outright drops from 8% to 6%. For 75g/km and under it remains 75/km, and 76g/km to 130g/km it’s still 18%.

 

Linked content:

BVRLA urges Chancellor to “rein in unhelpful tax hikes” at Budget

Coffee with…ACFO Chairman, John Pryor

 

Fuel duty to be frozen for ninth year in a row