PBR09: Fuel benefit charge to increase
09 December 2009
Fuel benefit charge is set to rise from the current level of £16,900 a year, to £18,000 from 6 April 2010, according to the Chancellor's Pre-Budget Report.
Fuel benefit charge is the taxable value given to the benefit of free fuel provided by an employer to an employee.
The charge for free fuel for company vans has also been increased.
The report stated: "The provision of free fuel to company car drivers provides a perverse environmental incentive. The Government is committed to increasing the fuel benefit charge multiplier - which is used to calculate the tax payable on free fuel - at least in line with inflation each year. The Pre-Budget Report announces that to support the public finances and encourage more fuel-efficient travel, from 6 April 2010, the multiplier will increase from £16,900 to £18,000. The van fuel benefit charge - on which tax on free van fuel is payable - will also increase from £500 to £550."
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