GB/EN

2020 Spring Budget

The 2020 Spring Budget was announced on Wednesday 11 March. It was hoped that this budget would bring some stability to the company car market as the past few years have left fleet managers and company car drivers guessing.

•   The company car tax rates announced in July 2019 have been confirmed, so:
    o   For cars registered from 6 April 2020 the planned 2% reduction across the majority of bands will come into force in 2020/21 tax year
    o   Benefit-in-Kind rates will rise by 1% in both 2021/22 and 2022/23 tax years
    o   The rates will then be frozen for the next 2 tax years, 2023/24 and 2024/25

•   The plug-in grant for electric vehicles will be extended until 2022/23 tax year. However, the grant will be reduced to £3000 and vehicles with list price above £50,000 will not qualify

•   £500 million is being invested in a rapid charging network to ensure you are never more than 30 miles from a rapid charger

•   The Electric Vehicle homecharge scheme and workplace charging scheme will continue but the value of the grant will reduce from £500 to £350 per socket. The number of sockets allowed under the workplace scheme has been increased from 20 to 40

•   VED rates increase in line with CPI but the measurement will be changing from NEDC to WLTP
    o   First year VED rates have increased by different amounts depending on CO₂
    o   The standard rate payable from year 2 has increased by £5 to £150
    o   Zero-emission vehicles that exceed £40,000 list price will no longer be subject to the standard rate VED surcharge in years 2 through 6

•   Fuel benefit increases from £24,100 to £24,500

Personal allowance remains at £12,500

Starting point for paying employees National Insurance Contribution increases to £9,500

Starting point for Scottish 20% tax rate increases to £14,585

Starting point for Scottish 21% tax rate increases to £25,158

Corporation Tax rate remains at 19%

 

From April 2021

•   First year Writing Down Allowance (WDA) of 100% only applies to zero-emission vehicles

•   18% WDA for vehicles with CO₂ between 1 and 50g/km

•   6% WDA for vehicles with CO₂ exceeding 50g/km

•   85% lease rental restriction applies to all cars with CO₂ emissions exceeding 50g/km

Roads

£27 billion will be invested in strategic roads and motorways, 20 connections to ports and airports, Over 100 junctions, 4000 miles of road. Schemes such as

•   dualling the A66 Trans-Pennine and upgrading the A46 Newark bypass, addressing congestion on these key routes in the North East and the Midlands

•   improving the M60 Simister Island in Manchester to tackle delays

•   building the Lower Thames Crossing, which will increase road capacity across the Thames east of London by 90%

•   building a new, high-quality dual carriageway and a two-mile tunnel in the South West to speed up journeys on the A303, and to remove traffic from the iconic setting of Stonehenge

•   considering how the A1/A19 north of Newcastle and the A1 Doncaster to Darrington in Yorkshire can be improved to speed up journeys and boost economic growth

•   exploring how to connect communities in East Lancashire and West Yorkshire better, and exploring the case for improvements to links between the M4 and the Dorset Coast

Local road upgrades

•   junction improvements to the A12 East of Ipswich

•   improving the A350 at Junction 17 of the M4

•   a single carriageway bypass on the A39 Atlantic Highway

•   junction improvements to the A426/A4071 Avon Mill/Hunters Lane, and a short dual carriageway

•   a link road from Chesterfield town centre to the A6192 and A619 at Staveley

•   carriageway dualling and roundabout improvements on the A12 in Woodbridge

•   junction improvements on the A127 growth corridor

•   capacity enhancement on the A326

•   alleviating congestion pinch points through the villages of Walton and Ashcott on the A39

•   junction improvements at the Army and Navy roundabout near the centre of Chelmsford

•   refurbishment of the flyover structure carrying the A232 in Croydon

•   improving the Ely to Cambridge A10 Junction

•   refurbishment to the Hope and Anchor flyover which carries the A316 Twickenham Road

•   refurbishment of Kew Bridge

•   upgrades to M5 Junction 9 and a bypass on the A46 Ashchurch

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