Budget 2016

The Budget  

The Chancellor of the Exchequer, George Osborne, delivered his last Budget of the Coalition Government on 16 March 2016.

The Chancellor provided details of the UK's finances and economic development and outlined measures the Treasury will adopt to meet the country's fiscal commitments.

Highlights from the Budget Statement include:

  1. Fuel duty to remain frozen for the sixth year

  2. The main rates of HGV VED and Road User Levy will be frozen in 2016-17

  3. The rates of car, van and motorcycle VED, Van Benefit Charge and van and car Fuel Benefit Charge are being raised in line with inflation

  4. Government will continue to incentivise the uptake of zero emission vans by retaining the Van Benefit Charge rates for these vehicles for a further two years

  5. 0.5% increase in the standard rate of Insurance Premium Tax

  6. Business rate relief for businesses under £15,000

  7. Corporation tac will be cut to 17% by April 2020

  8. Tax free allowance to be raised to £11,500

  9. 40p rate to be moved to £45,000

Additional announcements:

  1. There will be an extension on the 100% first year allowance for businesses purchasing low emission cars for a further three years to April 2021.
  2. Government will lower the main rate threshold for capital allowances for business cars to 110 grams of carbon dioxide (CO2) per kilometre and the first year allowance threshold to 50 grams of CO2 per kilometre from April 2018, to reflect falling emissions, and review the rates from April 2021 onwards at Budget 2019.
  3. A continuation to base Company Car Tax on CO2 emissions of cars, and consult on reforming the lower CO2 bands for Ultra-Low Emission Vehicles to refocus incentives on the clearest cars beyond 2020-21.
  4. The government is also considering limiting the range of benefits-in-kind that can attract an income tax and NICs advantage when they are provided as part of salary sacrifice. 

Click here to download a copy of the NFDA's pre Budget submission.

Click here to download a copy of the PRA's pre Budget submission. 

 

Summer Budget 

On Wednesday 8 July 2015, the Chancellor of the Exchequer, George Osborne, delievered an emergency Summer Budget following the May General Election. 

Click here to download a summary of the key policy accouncements affecting the automotive industry.

The RMI's NFDA submitted a pre Budget letter to the Chancellor. Click the link to read the submission - NFDA Summer Budget Submission 2015

The RMI's PRA submitted a pre Budget letter to the Chancellor. Click the link to read the submission - PRA Summer Budget Submission 2015

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