Budget 2015: Van benefit and fuel benefit to rise in line with RPI
18 March 2015
The chancellor has confirmed that both the van benefit and fuel benefit charges will rise from 6 April 2016.
The changes to the taxes paid on private fuel will be based on the Retail Price Index, while the tax cost of private use of a van will rise in line with inflation, and both will be introduced via secondary legislation later this year in time for tax coding in January 2016.
The Government has also confirmed that the zero van benefit charge on zero-emission vehicles will end in April 2016. For the 2016/17 tax year it will be 20% of the van benefit charge figure for regular vehicles, rising by 20 percentage points per year thereafter until a 10 percentage point rise to 90% in 2019/20 before the zero-emission benefit is removed completely in April 2020. At that point there will be a standard van benefit charge for all vehicles.