Fleet News

Treasury to give two years' advance warning of tax changes

FLEETS will get almost two years' advance warning of the new company car tax system planned from April 6, 2002, according to Economic Secretary to the Treasury Patricia Hewitt. She has announced that the 2000 Finance Bill - traditionally published soon after the annual March Budget - will outline all the details of the scheme.

The Treasury has already ruled that the new tax regime will begin in 2002 for all company cars 'to avoid the confusion and complexity of two parallel systems and accelerate environmental benefits'. 'Retaining the existing system for cars registered before then would reduce the incentive to choose more environmentally-friendly vehicles. We are announcing the new tax system in good time to encourage people to start choosing more fuel-efficient cars between now and 2002,' said Hewitt.

She recognised that company cars 'are an essential business tool', and said emission improvements to company cars have a disproportionately beneficial effect on the environment because half of all new cars were bought by companies. Top Inland Revenue officials will be discussing company car tax changes on the opening day of the three-day 1999 Fleet Show at the NEC, Birmingham, from April 27-29 at the PricewaterhouseCoopers-sponsored Business Forums.

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