WHILE a reduction in fuel duty was welcomed from the Chancellor’s Spring Statement, Alphabet wants the Chancellor to concentrate on future benefit in kind taxation rates.
The fleet industry is still lacking clarity on what will happen to benefit in kind taxes following 2024/25, which we hope to see the Chancellor address in his Autumn budget.Spencer Halil, chief commercial officer, Alphabet
Halil adds that fleets can use the 12 month fuel duty cut to look at electrifying their fleets so they can benefit from lower fuel whole life costs. However, he warns, more government support is needed to help businesses navigate the move to lower emission vehicles for longer-term sustainability both financially and for carbon emission targets. And that includes future BIK rates.
Meanwhile the BVRLA said it was pleased to the Chancellor wanted to cut and reform taxes on business investment. The association said that capital allowances played a crucial role in supporting the transition to zero emission road transport and wanted a regime that treated rented and leased assets fairly.
It is great to see that the government is now open to new ideas on capital allowances. This reform could play a massive role in driving fleet and charging infrastructure investment and we will be pushing for rental and leasing to be treated fairly as an efficient and effective means of financing new assets.Gerry Keaney, chief executive, BVRLA
Automotive and fleet writer for Broker News