Fleet News

Budget in brief

  • Company car tax – minimum threshold frozen at 140g/km for 2006/2007.

  • From April 6, 2005, private use tax charge scrapped for van drivers if private use is only a journey from home to work.
    From April 6, 2007, the scale charge for unrestricted private van use will increase to £3,000, with additional charge of £500 for free fuel. Emergency service workers, such as fire and ambulance personnel, given company vehicle tax concessions.

  • 20 pence per litre duty differential in favour of bioethanol and biodiesel, guaranteed until at least 2007

  • Duty differential in favour of liquefied petroleum gases cut by 1p per litre for each of the next three years to 2007.

  • Duty differential in favour of natural gas frozen at current level (equivalent to 41 pence per litre) to 2007.

  • Duty rates for sulphur-free fuels increased in line with inflation from September 1. Duty for ultra-low sulphur fuels set at 0.5 pence per litre above inflation from the same date.

  • VED rates for all vehicles are frozen for this year.
  • Biofuels Directive consultation paper to be published shortly, including a Biofuels Obligation for the transport sector.

  • Review of lorry road-user charging.

  • New disclosure measure to counter large-scale avoidance of direct taxes.

  • New rules to tackle underpayments of VAT on the private use of demonstrator cars, affecting motor dealers and manufacturers.

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