Budget Summary 2010

Company Car and Van Tax (Benefit in Kind)

Budget 2010 announces that:

Zero benefit in kind charge for company provided cars and vans which cannot produce more than 0g/km CO2 engine emissions under any circumstances when driven, this was previously available only for electrically propelled cars or vans.

New ultra low company car benefit in kind band of 5% will apply on cars emitting CO2 of between 1 to 75 g/km.

The company car tax rates for 2012/13 have been confirmed with banding changes for lower polluting cars.

Approved Mileage Allowance Payments

Remain unchanged at 40p for the first 10,000 miles and 25p thereafter.

First year allowances (good vehicles)

From 6 April 2010, businesses will be able to claim 100% first-year allowance (FYA) for the purchase of zero-carbon goods vehicles and it will be in place for five years.

Fuel duty

Next month’s planned 2.76p increase in fuel duty will now be applied in three stages. 1p will be on 1 April 2010, the next 1p in October 2010 and the final 0.76p in January 2011. Thereafter, the increase will be 1p per litre for 2013 and 2014.

Pence per litre (unless stated)	From 1 Sept 2009 to 1 April 2010	From 1 April 2010	From 1 October 2010	From 1 January 2011
Ultra-low sulphur petrol/diesel	56.19p	57.19p	58.19p	58.95p
Sulphur-free petrol/diesel	56.19p	57.19p	58.19p	58.95p
Biodiesel	36.19p	57.19p	58.19p	58.95p
Bioethanol	36.19p	57.19p	58.19p	58.95p
Liquefied petroleum gas used as road fuel	27.67p per kg	30.53p per kg	31.95p per kg	33.04p per kg
Natural gas used as road fuel	22.16p per kg	23.60p per kg	25.05p per kg	26.15p per kg
Rebated gas oil (red diesel)	10.80p	10.99p	11.18p	11.33p
Fuel Oil	10.37p	10.55p	10.74p	10.88p

Vehicle Excise Duty

VED Band	CO2 emissions g/km	2010-11
		First year rate (so called showroom tax)	Standard rate
A	Up to 100	0	0
B	101-110	0	20
C	111-120	0	30
D	121-130	0	90
E	131-140	110	110
F	141-150	125	125
G	151-165	155	155
H	166-175	250	180
I	176-185	300	200
J	186-200	425	2353
K	201-225	550	245
L	226-255	750	425
M	Over 255	950	435

BVRLA March 2010

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