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Budget 2012: Government freezes Van Benefit Charge
Date: 21 March 2012 | Author: James Dallas
The Government has frozen the Van Benefit Charge (VBC) at £3000 for the 2012/2013 financial year.
In his April 2012 Budget speech, chancellor George Osbourne also confirmed that from April 2015, the five-year exemption from the FBC for zero carbon emitting vans will expire, as legislated in the Finance Act 2010.
Under the current system operators using commercial vehicles with a payload of at least 1000kg for private as well as business use are taxed on just £3000 of the van's value - resulting in a £600 bill for those on the 20% rate or a £1200 charge for those on 40%.
In contrast company cars are taxed on a percentage of the model's list price, dependant upon its C02 output.
The chancellor has also frozen the Van Fuel Benefit Charge (FBC) for a year from 6 April 2012 at its current rate of £550. From April 2013 the FBC will increase in line with the Retail Price Index (RPI).
The Government has committed to pre-announcing the FBC multiplier one year ahead.
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