The Chancellor of the Exchequer, Philip Hammond, announced his Spring Statement 2018 on 13th March 2018. Within the speech, he vowed to improve business rates with a review of VED rates for green commercial vehicles.
The Spring Statement gives an update of the British economy and the forecasts from the Office for Budget Responsibility (OBR). During this Statement, progress since the Autumn Budget 2017 was addressed, including an increase for forecasted growth for this year.
During the Autumn Budget, it was announced that £1.7 billion would go towards improving transport in English cities. As a part of this, current air pollution is becoming a growing issue. Following a huge increase in diesel tax, and incentivised clean taxis, the Chancellor aims to encourage van drivers to go green.
See how it will affect you here:
|% of P11D||2017/18||2018/19||2019/20||2020/21|
|Price||CO2 (g/km)||CO2 (g/km)||CO2 (g/km)||CO2 (g/km)/electric mileage range|
|2||N/A||N/A||N/A||0-50 (zero emission or 130 miles+)|
|5||N/A||N/A||N/A||1-50 (70-129 miles)|
|8||N/A||N/A||N/A||1-50 (40-69 miles)|
|12||N/A||N/A||N/A||1-50 (30-39 miles)|
|14||N/A||N/A||N/A||1-50 (under 30 miles)|
Mr Hammond stated that he would help commercial and fleet drivers with the VED review, which would reduce expenses for the greenest commercial vehicles. Those who choose eco models will be rewarded with lower road taxes. Citroen, Nissan, Peugeot and Renault offer electric vans, and the new PHEV Ford Transit will be released next year.
In a further bid to reduce carbon emissions, the Chancellor announced changes to capital allowances for companies who buy cars. The restrictions will affect only cars with high emissions, following the legislation that leasing companies are ineligible to claim 100% first year tax allowance on cars. Companies can write down the full cost of vehicles up to 50g/km against their taxable profits.
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