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Budget 2014: Van Benefit Charge boost for zero-emission LCVs

Date: 19 March 2014   |   Author:

The chancellor George Osborn used the 2104 Budget to announce an incentive for zero-emission light commercial vehicles.

From April 2015, the van benefit charge, paid for workers with private use of a company van, will rise in line with the retail price index, as will that for company car drivers, but zero-emission models will only be charged at 20% of that rate in April 2015, rising in 20 percentage point increments every year until 2019 where it hits 90%, before equalizing with conventionally powered LCVs in 2020/21.

The rate will be reviewed in Budget 2016 "in light of market developments".

Van benefit charge will increase by £90 to £3090 from this April, while van fuel benefit charges will rise by £17 to £581 per year. Car fuel benefit charge, for drivers where their private fuel bill is paid by the company, increases by £600 to £21,700.