Budget 2014 for motorists
Following his penultimate budget, prior to the General Election, The Chancellor of the Exchequer has made a number of key announcements that affect motoring. In brief, they are:
Fuel – There will be no rise in fuel duty, prior to the 2015 general election.
Vehicle Excise Duty – from 1 April, 2014 VED rates will increase in line with the RPI. Yet, the Government will freeze the VED rates for Euro IV and V light goods vehicles in 2014/15.
Company car tax – the appropriate percentage of list price, subject to tax, will increase by two percentage points, for cars emitting more than 75 g/km of CO2, to a maximum of 37% in 2017/18 and 2018/19.
Car fuel benefit charge 2014/15 – employees, who are in receipt of company-funded fuel, used privately, will see their benefit-in-kind tax bills rise from April 6, 2014. The Chancellor announced that the fuel benefit charge multiplier for company cars will increase from £21,100 in 2013/14 to £21,700 in 2014/15.
Van benefit charge 2014/15 – the van benefit-in-kind tax charge will increase from £3,000 in 2013/14 to £3,090 in 2014/15.
Van fuel benefit charge 2014/15 – from 6 April, 2014, the van fuel benefit charge multiplier will increase from £564 to £581.
Road repairs – the Chancellor announced a £200 million “potholes challenge fund”. Billed as “emergency funding”, local authorities will be able to bid for the cash, to repair up to 3.2 million potholes, following the wet winter weather.