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Budget 2015: Company car tax changes bring even bigger focus on low CO2 vehicles, says Lex

Date: 18 March 2015   |   Author:

Lex Autolease, the largest leasing company in the UK, has said the 3% rise in benefit-in-kind rates in 2019/20 will bring even greater focus to fleets running low CO2 emission vehicles.
Andrew Hogsden, Lex Autolease senior manager, fleet consultancy, said: "The announcement that BIK rates will rise by 3% in 2019 makes it even more important for businesses to identify vehicles with low CO2 emissions that are both fit for purpose and attractive to drivers.
"Fortunately companies now have considerably more choice when it comes to reducing CO2 emissions.  They should also consider new and alternative technologies, which will become increasingly available by 2019, as well as best in class traditional fuels."
The Government announced a further freeze on fuel duty, but Hodgson wants to see duty reduced in the future to make sure businesses are not "priced off the road".
Hodgson also called for more clarity on advised fuel rates for ultra low emission vehicles.
He said: "The lack of clarity around mileage reimbursement rates for electric, plug in and duel fuel vehicles is a barrier to more businesses adopting this technology.
"Whether it's a company car or a private car used for work purposes, companies need clarity and certainty regarding the costs incurred in running electric vehicles and HMRC's treatment of those costs."


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