Tax­ing times for drivers

The Jewish Chronicle - - LIFE -

In the Spring Bud­get, the Chan­cel­lor an­nounced re­vi­sions to com­pany car tax rates to en­cour­age drivers into ul­tra-low emis­sion ve­hi­cles. But these changes need to be viewed along­side oth­ers. Any firms com­pil­ing com­pany car choice lists should take into ac­count the length of ve­hi­cle re­place­ment cy­cles and alert their drivers of the changes and po­ten­tial fi­nan­cial cost of pick­ing cer­tain ve­hi­cles.

For com­pany car drivers se­lect­ing sub-100g/km ve­hi­cles, the tax bur­den will be eased in 2020/21. Si­mul­ta­ne­ously, the govern­ment is in­tro­duc­ing a mileage range el­e­ment to the tax sys­tem for plug-in hy­brid cars: cur­rently there are none on sale in the UK with an elec­tric mileage range of 40 miles or more. This means they are ex­cluded from the three low­est CO2/elec­tric mileage range tax brack­ets in 2020/21, pre­vent­ing drivers from ben­e­fit­ing from even greater tax sav­ings. If a plugin hy­brid car was to be launched with a range of 130 miles or more and CO2 emis­sions of 1-50g/km the ben­e­fit-inkind tax bur­den in 2020/21 would be 2% - a 7% point sav­ing ver­sus 2017/18 and a 14% point sav­ing ver­sus 2019/20.

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