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PRE-BUDGET '08: HMRC reveals ECO scheme clarification
Date: 24 November 2008
Hidden in the Pre-Budget 2008 document is a paragraph re-affirming the Government does not intend to impose a tax on Employee Car Ownership schemes.
The statement said: "Budget 2006 announced that HMRC would carry out a review into the taxation of Employee Car Ownership (ECO) schemes. A report summarising the ?ndings of this review is published today. This sets out the background to the Government's decision not to impose a speci?c tax on ECO schemes, or alter the structure of AMAPs at the current time, but to continue to provide a clear and simple system for business and employees."
The full report comes after a short statement in the full 2008 Budget in March which said that AMAP rates, integral to ECO schemes, would remain unchanged.
Commenting on the Pre-Budget ECO scheme statement David Brennan, LeasePlan managing director, said: "On the whole, this is a good thing. Any increase in AMAP rates would simply encourage more people out of clean, safe, efficient company cars. ECO schemes have proved increasingly popular in recent years - they seem set to remain popular following this announcement."
