Budget 2013… impact on your fleet
This year’s Budget, presented by the Chancellor on Wednesday 20th March 2013, was a Budget to support aspiration with the objective of having a tax system that would be the most competitive for businesses, and continues to encourage low emission ﬂeets.
There are a number of signiﬁcant changes for fleet managers which have been announced in George Osborne’s fourth Budget including
• The corporation tax rate for large companies will reduce to 20% from April 2015.
• Further support for motorists through the cancellation of the fuel duty increase that was planned for 1 September 2013.
• An extension to the First Year Allowance (FYA) for a further three years until 31 March 2018 with leased business cars not being eligible, as previously announced.
From April 2015, the carbon dioxide (CO2) emissions threshold will be reduced from 95 g/km to 75 g/km.
• From April 2015, two new Company Car Tax (CCT) bands for Ultra Low Emission Vehicles (ULEVs) will be introduced at 0-50 g/km and 51-75 g/km.
• From 6th April 2014, the threshold for interest free loans provided by employers to employees doubles to £10,000, having a positive impact on Employee Car Ownership Schemes (ECOS).
This budget highlights the need to have ﬂexibility in the funding of your company vehicle arrangements. Is this something we can help you with?