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06 Dec 2012 08:40 Last updated: 03 Jan 2013 15:32
Autumn statement 2012
The Chancellor of the Exchequer delivered his Autumn Statement to Parliament on 5 December 2012
Company car tax and other automotive taxes remained largely unchanged in the Chancellor's Statement delivered on 5th December.
The condition of the economy might be more wintry than autumnal, as we are faced with an even longer period of structural rebalancing.
- Company car tax is unchanged from previous announcements for now, although "the Government will consider the case for providing time-limited incentives....to encourage the purchas and development of ultra-low emission vehicles." Several motoring bodies had made representations about the sudden jump in April 2015 to BIK at 13% of list price for electric and sub-75gm cars.
- Fuel benefit multiplier will increase to £21,100 for cars and £564 for vans in April 2013. This follows on from the last Budget where it was announced that the car fuel benefit would rise faster than inflation. This only applies to company car drivers who have some element of private fuel paid by the company. There are tools on the website to help you check if this is worthwhile. Most taxation works well by encouraging less use of fuel, but this measure is the exception. If you are paying a large fixed amount of tax, it would be rational to consume as much "free" fuel as possible on private journeys.
- Fuel Duty will remain at current levels until 1st September 2013. The planned increase of 3.02ppl on 1st January has been cancelled.