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.