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BVRLA calls for low-CO2 vehicle support in Budget

Date: 13 March 2014

British Vehicle Rental and Leasing Association boss Gerry Keaney has written to the chancellor George Osborne ahead of the 2014 Budget statement next week, calling for a different approach to low-emission vehicles and suggesting changes that would reduce fleet uncertainty and admin burden. 

The association has suggested that the 0% benefit-in-kind rate for zero-emission cars should be extended by a year to 2016/17, and the P11D value should take into account the Government's £5000 grant.

Keaney also said fleets running cars under 75g/km could be allowed to claim 115% of rental payments as capital allowance against their corporation tax bill, and that the Treasury could offer an enhanced capital allowance for fleets installing charging points at workplaces. 

Keaney asked for an extension on the amount of notice for car BIK bandings from the current three years to five in the wake of more fleets running cars for four or five years.

The move would also "support the business case for acquiring electric vehicles, which need to be operated for longer periods so that their cheaper running costs can outweigh their higher up-front costs", said the BVRLA chief executive.

Other BVRLA lobbying includes a call for the removal of the 3% diesel BIK penalty for cars meeting Euro6 emissions legislation, extended notice of VED bandings to the three years already offered on BIK taxation, and the option to purchase VED for the length of a car lease, rather than annually. 

Chopping tax-free mileage reimbursements under AMAP to 3000 business miles, cutting fuel duty by 3p per litre, and a programme of enhanced road maintenance were also on the BVRLA's wish list.