News Story

BVRLA asks Chancellor to support company cars in Budget

Release Date: 
08/10/2018

The BVRLA is urging the Chancellor to use his Autumn Budget statement to energise the take up of plug-in electric vehicles and to support the vital role played by the company car.

The association has warned the Government that it risks losing its zero-emission momentum unless it can deliver a fairer and well-signposted Company Car Tax (CCT) regime.

Under current plans the Company Car Tax benefit-in-kind (BIK) rate for electric company cars is set to soar to 16% in April 2019 before dropping to 2% the year after, actively disincentivising the take-up of these cars and contradicting the ambitions set out in the Government’s ‘Road to Zero Strategy’.

By bringing forward the 2% CCT rate for zero emission vehicles, the Government could provide a much-needed stimulus to the electric vehicle market, which is currently growing at less than 4% per year.

As plug-in vehicles do not yet provide the best solution for all types of journeys the BVRLA is also calling for support to incentivise the use of low-emission petrol and diesel company cars.

According to the latest BVRLA Sustainability Credentials figures, the average company car emits 11% less CO2 than the average personal lease car and 19% less CO2 than the average grey fleet car.

The BVRLA Budget submission recommendations ask the Chancellor to:

1. Freeze Company Car Tax at 2018/19 rates
2. Eliminate unintentional tax increases arising from the transition to WLTP
3. Bring forward the 2% Company Car Tax threshold for Zero Emission Vehicles to 2019/20
4. Publish 4 to 5-year view of future Company Car Tax Bands
5. Address other CO₂ based motoring related taxes

Members can support the BVRLA’s calls by writing to their local MP using one of the association’s pre-written letter templates.

Members can also access the BVRLA Factsheet: A Fair & Sustainable Company Car Tax Factsheet which summarises the key recommendations and statistics supporting the submission.

Members can read the full Budget submission here on the BVRLA website.