Fleet News

Leading Tory puts weight behind fleet cause

A Conservative MP has put fleets at the top of her agenda for the next Parliament. Anne McIntosh, MP for the Vale of York, is focusing on the effect the new carbon dioxide-based tax system will have on company car drivers, particularly those covering high mileages.

She raised her first questions in the Houses of Parliament this week, demanding information from Financial Secretary to the Treasury Paul Boateng about the impact the new regime will have. Under the current company car tax system, drivers pay tax on 35% of the P11D price of the car if they cover fewer than 2,500 business miles, 25% if they drive between 2,500 and 17,999 business miles and 15% if they exceed 18,000 business miles.

Under the new system, drivers pay a tax on a percentage of the P11D price determined by its CO2 emissions, ranging from 15% to 35%, with a 1% increase for every 5g/km of CO2. Boateng revealed that the Treasury would carry out extensive analysis of the new tax system once it was launched to ensure it was achieving the aim of incentivising cleaner transport. He told Parliament: 'Extensive evaluation is planned through analysis of Inland Revenue data and by surveys of employers and employees.'

McIntosh, who was re-elected for a second term in the recent general election, said: 'Some employees are going to be grossly disadvantaged by this new tax system and the effect of what is effectively a stealth tax. I would like to make this issue one of my main campaigns for the future.'

Lex Vehicle Leasing has presented the Treasury with a modified version of the CO2-based regime that would see tapered tax relief for drivers currently exceeding 18,000 business miles. Its proposal would offer high mileage drivers a one percentage point discount for every thousand business miles they cover beyond 18,000 miles, but keep a minimum tax charge of 15% of P11D price. But at Fleet Show 2001, the Inland Revenue said there would be no mileage discounts within the new system.

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