The Government has issued consultations on three areas of tax policy that substantially impact the fleet sectors: salary sacrifice schemes, lease accounting and company car tax treatment of ultra-low emission vehicles (ULEV). The British Vehicle Rental and Leasing Association (BVRLA) has already welcomed the news, noting the potential for more clarification in each of the three main areas.æ It's hoped that Her Majesty's Revenue and Customs (HMRC) will be able to better understand the fleet industry's views as a result. In terms of ultra-low emission vehicles, HMRC and Her Majesty's Treasury (HMT) are looking to find out more about how the current company car tax system can be adjusted in order to meet the needs of lower emission fleets whilst still encouraging uptake. Gerry Keaney, BVRLA chief executive, said: 'For some time we have been calling on the Government to increase the number of ULEV tax bands and narrow the CO2 gaps, so that greater incentives can be provided for those choosing the cleanest vehicles. 'The Government is right to explore whether zero-emission range could be used alongside CO2 emissions to produce a more effective set of company car tax bands, but it needs to ensure that any new system does not become too complicated.î The rising costs of salary sacrifice schemes is also a concern for the Government, who are considering limiting the contribution advantages for both Income Tax and National Insurance Contributions that are currently available through the schemes. Mr Keaney added: 'These schemes offer a valuable way of rewarding and retaining staff, particularly for many public sector organisations who have had to struggle with long-term pay freezes. 'The vast majority of staff receiving this valuable perk are in the basic income tax bracket and salary sacrifice schemes provide them with a unique opportunity to drive a newer, cleaner and safer car than they would otherwise. 'The new car sales generated by salary sacrifice schemes give a valuable boost to the UK economy and provide a more sustainable alternative to the older, more polluting grey fleet vehicles that staff might otherwise use for business travel.î The other major issue for the Government is how lease accounting rules will impact tax treatment of leased assets and the ways in which tax legislation will need to adapt as a result. Mr Keaney said: 'We will be working closely with HMRC to ensure that these long awaited new lease accounting rules result in a simpler and fairer tax treatment of leased assets, particularly for low emission vehicles that should be entitled to enhanced first-year capital allowances.î