Fleet News

New call to keep tax system

THE British Vehicle Rental & Leasing Association has written an open letter to Chancellor of the Exchequer Gordon Brown urging him not change the company car tax system. The pre-Budget submission calls on the Inland Revenue to keep the current benefit-in-kind tax regime in place until sufficient research has been carried out into alternatives.

Earlier this year BVRLA members attempted to provide the Inland Revenue with significant information on company car drivers' business and private mileage. However, they were unable to obtain the data required to produce any meaningful conclusions.

The BVRLA, which represents companies running in excess of 1.5 million vehicles, has also called for the Chancellor to abolish the 'expensive' car leasing disallowance in his March Budget. This partial disallowance of corporation tax only applies to leased cars, and its £12,000 limit has not been increased for six years.

'It is discriminatory, inequitable and burdensome,' says the BVRLA's letter, which argues that the disallowance gives outright purchase, hire purchase and conditional sale an unfair advantage over contract hire and leasing.

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