UK Budget 2013
(Wednesday 20 March 2013)
In today's Budget, Chancellor of the Exchequer George Osborne has announced that the 1.89p per litre increase in fuel duty planned for September 1 has been scrapped.
This has been broadly welcomed - John Lewis, Chief Executive of the British Vehicle Rental and Leasing Association (BVRLA) said abandoning duty increases "is almost becoming a no-brainer" - but the Freight Transport Association, the Road Haulage Association, the Forum of Private Business, FairFuelUK and, somewhat improbably, Autoglass have all expressed disappointment that Osborne did not go a step further and reduce fuel duty.
Vehicle Excise Duty rates are being frozen for HGVs, and although they're increasing for vans and passenger cars from April 1 this will only be in line with the Retail Price Index. The basic structure of VED payment won't change for the duration of the current Parliament.
Two new company car tax bands will be introduced on 6 April 2015. One applies to vehicles with official CO2 emissions of up to 50g/km, 5% of whose value will be subject to taxation in the financial year starting on that date and 7% in 2016-17. The equivalent percentages for vehicles emitting between 51g/km and 75g/km will be 9% and 11%.
The 100% first year tax allowance for low-CO2 cars, previously due to end on 31 March 2015 will now continue for a further three years, though from 1 April 2015 the maximum emissions permitted will fall from the current 95g/km to 75g/km. A still greater extension of the allowance will be considered in the 2016 Budget.