There were no great motoring surprises to emerge from Chancellor George Osborne's budget speech today. We have been through the details and dug out the following items. These have been applied to our calculators where relevant.

Company car tax

In both 2017-18 and 2018-19 the appropriate percentages will increase by 2% for all cars emitting more than 75 grammes of carbon dioxide per kilometre. So there is no let up in incentivising drivers to pick more efficient cars, though you could argue that the government is having to lower the CO2 thresholds even faster than manufacturers can produce low emission cars in order to maintain the tax-take. Drivers now know what the tax rates are going to be for five full years ahead, though this window will have fallen to 4 years by the time of the next budget.

Despite representations from several interests, the previously announced taxation of electric cars at 5% from April 2015 still stands and we now know this will increase steadily to 13% in 2018-19 and perhaps 17% in 2019-20.

Fuel benefit charge

From April 2015 this will increase by RPI (which might be around 3%) for cars and vans.

Van benefit charge

In April 2015 this will increase by RPI, though the government has announced support for zero emission vans to 5th April 2020 on a tapered basis. In 2015/16 zero emission vans will pay just 20% of the standard van benefit charge, followed by 40% in 2016/17, 60% in 17/18, 80% in 18/19 and 90% in 2019/20. These measures are subject to review at Budget 2016 in the light of market developments. So far the only electric vans are the strictly utilitarian types so there are unlikely to be large quantities of electric vans with significant private use very soon.


Almost all the VED rates will increase by RPI on 1st April 2014. Although such changes on their own will not affect company car tax, we expect all manufacturers to issue new price lists on that date, and there will inevitably be widespread increases in both the list price and subsequently the company car tax.