đź•’ Article read time: 2 minutes
Need-to-know Autumn Statement insights for businesses with van fleets
Last week (22 November) the Chancellor of the Exchequer, Jeremy Hunt, made his Autumn Statement to Parliament.
This included several announcements that will affect businesses operating van fleets. Here, Denise Beedell, Senior Policy Manager at Logistics UK, shares an overview of the key measures that these businesses must be aware of.
VEHICLE EXCISE DUTY (VED)
While the Chancellor announced that VED for HGVs and the HGV levy will be frozen at the 2023-24 rates until April 2025, duty for cars, vans and motorcycles will be uprated in line with the retail price index (RPI) from 1 April 2024.
The Van Benefit Charge and Car and Van Fuel Benefit Charge will be maintained at £3,960 until April 2025 for non-electric company vans. “This is effectively a cut in the value,” says Beedell, “as this benefit usually increases each year in line with the Consumer Price Index.”
FULL EXPENSING FOR CAPITAL SPENDING
The full expensing allowance for capital spending, which was due to end in March 2026, is to be made permanent.
“This will provide certainty for logistics operators planning investments in their commercial vehicle fleets,” says Beedell.
Also announced was a technical consultation to consider changes to capital allowances available for expenditure on the provision of plant and machinery.
“While we welcome this measure, we will be calling for the capital allowances provision to include the cost of acquiring leased or hired vehicles, as well as those purchased outright.
“There is still significant work to be done to support operators with the cost of installing infrastructure and augmenting power supply required for the decarbonisation of vehicle fleets; this allowance needs to be expanded to cover the cost of installing the energy infrastructure required to enable businesses to decarbonise.
“Logistics UK will be working closely with the government in the coming weeks and months to ensure the measures included in the Autumn Statement deliver the best possible outcomes for the UK logistics industry,” concludes Beedell.
Published On: 30/11/2023 14:30:00
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