Chancellor’s tax relief for cleanest vans requires further detail – KPMG

13th March 2018 | 0 Comments
 

The chancellor of the exchequer, Phillip Hammond, has announced a reduction in tax for the cleanest vans in his Spring Statement. Introducing the measure, he said the government wanted to “help the great British white van driver go green.” Analyst KPMG responded that more detail is needed to allow vehicle manufacturers to develop products to take advantage of the tax reduction.

Commenting on the announcements made by Phillip Hammond today, Justin Benson, head of automotive at KPMG, said: “Today’s Spring Statement announcements about potentially reducing VED rates for those driving the cleanest vans, will be welcomed by the automotive industry. However, whilst it’s essentially an effective tax on old diesel vehicles, the government hasn’t given enough detail on what “cleanest” actually means, and this is where more information is required.

“This is particularly important for carmakers when making investment decisions, so more clarity is needed, and the time for that is now.”

LeasePlan UK requests company car tax clarity

Matthew Walters, head of consultancy and customer data services at LeasePlan UK, added that the VED rate reduction on the cleanest vans is “welcome news. As a founding member of the EV100 initiative, LeasePlan is committed to low emissions. We strongly believe that vans should be part of this conversation as much as cars.

“However, it should be noted that the government has already launched several consultations in this area – including one on electric vans – but is yet to announce the outcomes of them. If the chancellor is to help us deliver on What’s next, then he needs to start confirming some of his policies.”

He added that “Philip Hammond has again failed to announce the rates of Company Car Tax for 2021-22 and 2022-23. Many fleets and employees are now entering into 48-month leases that will stretch into those years, so they need clarity as soon as possible. The Chancellor must not fail to publish these rates in his Autumn Budget – if not before.”

Walters concluded that “We knew in advance that the Spring Statement would be light on policy.”

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Category: Legislation, UK News