Autumn Budget 2017 Reaction: Cars and vans
Chancellor Philip Hammond delivered his second Budget of 2017 to Parliament this afternoon. We have created a video and a series of short blogs on various tax and business related Budget announcements to help clarify some of the details behind the headlines.
Van and Car Benefits in Kind
The budget introduced a number of changes in relation to the provision of company cars and vans:
- The flat rate van benefit charge will increase to £3,350 with the van fuel increasing to £633 from 6 April 2018. The multiplier for the car fuel benefit charge will increase to £23,400.
- From 6 April 2018 the diesel supplement used when calculating the taxable benefit on a company car will increase from 3% to 4% for cars registered on and after 1 January 1998 that do not meet the Real Driving Emissions Step 2 (RDE2) standards.
- The 100% first year allowance for businesses purchasing zero emission goods vehicles has been extended for a further three years until April 2021.
- Employer provided electricity from workplace charging points for electric or hybrid cars owned by employees will be exempt from being taxed as a benefit in kind. This is an extension to the legislation which currently exempts employer provided electric or hybrid vehicles.