Fleet News

Changes in van taxation on cards

A GOVERNMENT focus on the environment, which is to transform company car tax in 2002, could lead to major changes to van taxation. Currently, benefit-in-kind tax for vans made available for private use is set at a standard £500, but delegates at the four Fleet Show Forums on tax changes for fleets heard the Government was expected to assess vans on their carbon dioxide in the same way as cars.

Delegates also heard that the Inland Revenue approved mileage rates - also called the Fixed Profit Car Scheme - could be changed to discourage drivers from large-engined, high polluting cars. The importance of the potential tax changes to fleets was hammered home by attendance at the forums, with standing room only in each event, with a total of about 400 visitors picking up vital information. Gary Hull, director of global HR solutions at PricewaterhouseCoopers, said: 'Tax on vans will stay at £500 and that will stay the same under the new system, but that could be under review.'

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