Fleet News

Changes to company car tax set for March Budget

THE Government's plans to change company car tax will be detailed in the Chancellor's March 1999 Budget rather than the white paper on an integrated transport system. This means the new benefit-in-kind tax regime will not become effective before April 2000 at the earliest.

John Dawson, group public policy director of the AA, and a key adviser to the Department of Environment, Transport and the Regions, said the white paper, due out later this month, would lay a blueprint for the UK's future transport framework, but would not contain details on the Government's fiscal intentions.

The revelation is a severe blow to fleets which are delaying important policy decisions until after the publication of the white paper. They were led to expect by last March's Budget that the white paper would contain clear guidance on how the Government planned to change benefit-in-kind taxation on company cars.

With the delays in the publication of the white paper, and the news that it will be the next Budget which will hold the key to any changes in company car tax, it seems the earliest any new company car tax legislation can come into effect is April 2000.

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