The fleet industry anticipates the 2018 Budget will include an announcement on the future shape of company car benefit-in-kind taxation from April 2020.
Chancellor of the Exchequer Philip Hammond announced that the 2018 Budget will be held later this month (Monday, 29 October.)
It is hoped that the Chancellor will perform a U-turn on the decision to increase to 16% benefit-in-kind tax on cars with emissions of 50g/km or below in 2019/20 and bring forward the already announced reduced rates, including:
• The 2% threshold for 100% electric models
• and those with an electric mileage range of up to 130 miles, to April next year from 2020/21.
The Chancellor said he had brought the Budget date forward to avoid the set-piece economic statement clashing with the latter stages of the ongoing Brexit negotiations.
The earlier than expected Budget breaks with the tradition as it is being held on a Monday and in October – rather than on the more traditional Tuesday or Wednesday in November or early December.