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A series of important tax changes affecting the vehicle leasing sector have come into effect for the 2026–27 tax year, including updates to Vehicle Excise Duty (VED), Benefit in Kind (BiK) and the Capital Allowances regime.
Following years of sustained campaigning by the BVRLA and industry partners, the Chancellor has confirmed positive changes to Capital Allowances. These include the introduction of a new first-year allowance for leasing companies, as well as updates to how the regime interacts with the short life asset election - an area expected to be of particular relevance to members.
Alongside these reforms, a number of other measures announced in the latest Budget will also impact fleets and operators. These include an update to the expensive car supplement for electric vehicles, a BiK easement for plug-in hybrids based on emissions testing and type approval, and separate Advisory Electricity Rates (AER) for public charging.
To support members in navigating these changes, the BVRLA has produced practical guidance factsheets. These resources provide clear, accessible information on what the updates mean in practice and how businesses can respond.
Members can download the following:
