Fleet News

Personal leasing comes under threat

THE future of personal leasing schemes is under threat as the Budget has made the company car more attractive to most drivers - but it still has a future in fleet, the Budget Briefing heard. Personal leasing schemes transfer ownership of the vehicle to the employee, using savings on company car tax to pay for the vehicle. But part of the income stream that ensures the driver is not out of pocket by abandoning their company car is the Fixed Profit Car Scheme.

John Whiting, tax partner with PricewaterhouseCoopers, warned there was a potential for the rates to come down. But Simon Richmond, managing director of ACL autolease, said he felt there could be growing interest in PCPs among high mileage drivers, who are worst hit under the new CO2-based company car tax regime if they do more than 18,000 miles a year.

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