The Conservative victory in the general election hasprovided the Fleet industry with ‘clarity’ over whether the outstanding companycar tax legislation would be passed.
The legislation, which states that company car drivers whochoose a pure electric vehicle will pay no benefit-in-kind tax in 2020/21, wasannounced earlier this year.
Expected to be passed in the Autumn budget, ahead ofimplementation in April 2020, the plans were put on hold due to the deadlockwith Brexit. The failure to give plans the green light has left the fleetindustry, (as well as the rest of the country) in a state of uncertainty.
Discussing the result of the General election, Paul Hollick,chairman of the Institute of Car Fleet Management (ICFM), said a majorityGovernment was “excellent news” as it could provide the fleet industry with“clarity”.
He continued: “The fact that the Conservative Party remainsin power means that we can expect outstanding legislation, such as thatrelating to previously announced company car benefit-in-kind tax rates from April2020, to be passed as previously announced.”
Similarly, Caroline Sandall, chairman of fleetrepresentative body ACFO, added: "I hope that we will now see legislationpassed that puts into law the already announced company car benefit-in-kind taxrates for the three financial years starting 2020/21.
“What’s more, ACFO looks forward to strong, coherent - notuncoordinated - policies that address poor air quality that impacts on everyoneand a clear strategy to support the motor industry to reduce vehicle emissionsand the overall environmental impact of transport."
New rates are expected to be confirmed during the next week,following the confirmation of the budget by the Chancellor of the Exchequer.Hopefully this should result in company owners who are considering investing ina new company car having a clearer idea of when the new legislation will beimposed and what this will mean for their business.