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BVRLA urges Government to stop 'unfair' company car tax changes

Date: 11 February 2016   |   Author: Daniel Puddicombe

The BVRLA has called on the Government to "treat company car drivers more fairly" ahead of March's Budget announcements.

In its letter to the Treasury, the rental industry called on Chancellor, George Osborne, review the company car taxation system.

The BVRLA said the planned 2% increase in company car tax from 2017-8 and the delay in removing the 3% diesel supplement will cost a typical company car driver an additional £626 in 2017-18, and an extra £882 in 2018-19, compared with what they paid in 2013-14.

"Since George Osborne became Chancellor in 2013, company car drivers have been hit by a series of tax increases that are both unfair and unsignposted," said BVRLA chief executive, Gerry Keaney.
"It is no coincidence that we have seen 30,000 fewer employees taking a car as part of their work package during this period," he added.

The recommendations in the BVRLA's Budget submission are:
·      Abolish the 3% diesel supplement on benefit in kind (BIK) tax bands for Euro 6 cars from 2016

·      Reform BIK bandings, offering a greater incentive for users of ultra-low emission vehicles (ULEVs)

·      Make leased vehicles eligible for first year capital allowances

·      Introduce a new tax category for electric vehicles that takes their range into account

·      Provide more in-life incentives for ULEV drivers

·      Safeguard the benefits of company salary sacrifice schemes

·      Provide incentives for the fitment of autonomous emergency braking technology