Fleet News

BIK plans will hit RVs of high pollution vans

VAN fleet operators could face a nightmare at disposal time if changes to the benefit-in-kind tax rules are introduced in Chancellor of the Exchequer Gordon Brown's pre-Budget report, due next month.

Industry experts predict that high-polluting vans will be targeted by the Chancellor, effectively meaning older vans will be hit by a fall in demand.

John Watts, senior editor of CAP Commercial Vehicle Monitor, said: 'It is important for operators to be aware now that if the difference between emissions-related taxation levels is very marked, drivers will be reluctant to stay in an unfavoured van.

'This will put pressure on residual values because it will open a gap in perceived value between vans with differing emission levels. When drivers start complaining they do not want to drive certain vans, operators will come under pressure to compensate them or dispose of the vehicle in favour of one in a lower tax bracket.'

Watts believes the proposed changes will more than certainly mean company drivers will steer clear from older vehicles. He added: 'The potential reduction in values for BIK-efficient vans means operators need to be thinking now about how they might respond to these issues, before they are overtaken by events.'

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