Fleet bodies ICFM and ACFO have broadly welcomed the result of the General Election, noting the Conservative win should pave the way for new company car tax rates to be introduced from next April.
Boris Johnson’s party secured the largest Tory majority since 1987, taking seats in the north of England from Labour.
“The fact that Britain now has a majority Government is excellent news and provides clarity and a distinct route for the journey ahead, while putting an end to the political and business uncertainty of recent years,” said Paul Hollick, the ICFM’s chairman. “The fact that the Conservative Party remains in power means that we can expect outstanding legislation, such as that relating to previously announced company car benefit-in-kind tax rates from April 2020, to be passed as previously announced.”
Last summer, the Government confimed BIK rates until 2023, with electric vehicle owners not paying tax next year with 2021/22’s rate set at 1% and 2022/23’s rate at 2%.
Caroline Sandall, chairman of ACFO, added: “The large Conservative Party majority in the general election ends the political paralysis of the last three-and-a-half-years, which has been dominated by Brexit. As a result I hope that we will now see legislation, such as the outstanding Finance Bill, passed that puts into law the already announced company car benefit-in-kind tax rates for the three financial years starting 2020/21.”
“What’s more, with the Conservative Party promising a Budget in February, ACFO looks forward to strong, coherent – not uncoordinated – policies that address poor air quality that impacts on everyone and a clear strategy to support the motor industry to reduce vehicle emissions and the overall environmental impact of transport,” she concluded.