The BVRLA has welcomed the Government’s commitment to work with the vehicle rental and leasing sector to try to deliver a more supportive capital allowances regime that will benefit all fleets. The association, in conjunction with other stakeholders, has been invited to engage with HM Treasury to explore how to overcome long-standing exclusions ahead of the next fiscal event this Autumn.
In yesterday’s Budget the Chancellor announced a new 100% first year allowance that will enable companies to write off the full cost of their investments against their corporation tax bill in the first year. The leasing and rental sectors have historically been excluded from claiming these powerful investment allowances and passing them onto their customers in the form of lower lease or rental rates. In announcing the new allowances, the Government has publicly indicated that it will work with the BVRLA to develop a policy solution that includes this key vehicle acquisition method for the first time.
Commenting on the announcement, BVRLA Chief Executive, Gerry Keaney, said: “The Government has acknowledged how critical vehicle rental and leasing is in driving business investment in cleaner commercial vehicles and infrastructure.
“We look forward to working with them in the coming months to develop a powerful capital allowances regime that can drive even faster decarbonisation of road transport.
“Other aspects of the Budget are more concerning and at odds with the cost of living crisis the nation finds itself in. Rising VED for cars and vans in line with RPI, not CPI, puts an even greater financial burden on drivers. The reintroduction of the HGV levy adds further costs and is something the BVRLA will be working with members and policymakers on to ensure a fair implementation.”
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