Motorists up and down the country will have been glued to the news today waiting to see what Chancellor George Osborne had in plan for the British driver. Here are the key points from the 2014 budget.
The budget contained some good news for motorists, with the planned increase in fuel duty being frozen until the next general election. The Chancellor also announced a £200 million fund for the repair of potholes, which should go some way to renewing Britain’s scarred road network.
Here are the details in full:
Fuel – the Chancellor confirmed his Autumn Statement 2013 announcement that September’s planned 1.6p per litre rise in fuel duty was cancelled. It means that there will be no rise in fuel duty prior to the 2015 general election.
Vehicle Excise Duty – from 1 April, 2014 VED rates will increase in line with RPI. The Government will freeze the VED rates for Euro IV and V light goods vehicles in 2014/15.
Company car tax – the appropriate percentage of list price subject to tax will increase by two percentage points for cars emitting more than 75 g/km of CO2, to a maximum of 37%, in 2017/18 and 2018/19. The Government remains committed to reviewing incentives for Ultra Low Emission Vehicles in light of market developments at Budget 2016, to inform decisions on company car tax from 2020/21 onwards.
Car fuel benefit charge 2014/15 – employees who are in receipt of company-funded fuel used privately will see their benefit-in-kind tax bills rise from April 6, 2014. The Chancellor has announced that the fuel benefit charge multiplier for company cars will increase from £21,100 in 2013/14 to £21,700 in 2014/15.
Van benefit charge2014/15 – the van benefit-in-kind tax charge will increase from £3,000 in 2013/14 to £3,090 in 2014/15, the Chancellor has announced.
Van fuel benefit charge 2014/15 – from 6 April, 2014 the van fuel benefit charge multiplier will increase from £564 to £581.
Road repairs – the Chancellor announced a £200 million “potholes challenge fund”. Billed as “emergency funding”, local authorities will be able to bid for the cash to repair up to 3.2 million potholes following the recent severe weather.