Zero emission vans

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Between 2010/11 and 2014/15, there was no charge for zero emission vans. However, this exemption is now being phased out gradually between April 2015 and April 2022 such that from 2022-23, the full van benefit charge will apply to zero-emission vans.
 
Between April 2015 and April 2018 a rate of 20% of the van benefit charge for vans which emit CO2 also applies to zero-emission vans. 
 
The reduction of the benefit for the current and future years is set as follows:
 
* 2018/19 - 40% of van benefit
* 2019/20 - 60% of van benefit
* 2020/21 - 80% of van benefit
* 2021/22 - 90% of van benefit
 
From 2022/23, the full van benefit charge for zero emission vans will apply, in line with the benefit charge for conventionally fuelled vans.
 
Whilst the nil benefit change on vans is gradually being phased out, the Government continues to offer other tax incentives to promote greener travel. Autumn Budget 2018 announced that the period for which 100% first-year allowances (FYAs) are available to businesses for expenditure on plant or machinery for electric vehicle charging points, is to be extended. 100% FYAs will be available for expenditure incurred on or after 23 November 2016 up to and including 31 March 2023 for corporation tax purposes and 5 April 2023 for income tax purposes. The relief is subject to certain conditions the expenditure must be on plant that is 'unused and not second-hand'.
 
Given the tax incentives currently available, businesses thinking of buying or changing vans may wish to consider the options for electric or zero emission vehicles in the short term.
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Added By: Sharon Worger on 17th Dec 2018 - 16:02
Last Updated: 17th Dec 2018 - 16:09

Number of Views: 123
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