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Autumn Statement: ACFO disappointed by 3% diesel levy U-turn

Date: 25 November 2015   |   Author: Daniel Puddicombe

ACFO chairman, John Pryor, has said he is "disappointed" at the Chancellor, George Osborne's Budget announcement to retain the 3% company car benefit-in-kind diesel supplement - which was due to be renewed in 2016 - until 2021.

In 2012, Osborne pledged to remove the levy by April 2016 - reflecting reduced diesel emissions. The Chancellor today blamed the delays on changes to the EU emissions tests in his Autumn Statement.

"In light of the slower than expected introduction of more rigorous EU emissions testing, we will delay the removal of the diesel supplement from company cars until 2021," he said.

The change in policy will raise £1.36bn for the treasury over the next five financial years.

"There will be many fleets and company car drivers that have made vehicle choices based on the fact that they would save cash as a result of the previously announced withdrawal of the supplement," Pryor said.

"Over many years, ACFO has been consistent in its call for clarity and

long-term decision-making so that fleets and company car drivers could plan for the future in full knowledge of what the tax burden will be. This Government U-turn does not assist that process."



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