Changes To The Tax Of Diesel Vehicles To Be Announced In Autumn
Chancellor Phillip Hammond has announced that he will be revealing changes to the tax treatment of vehicles around autumn time. His view is that the Government is fully committed to improve and enhance air quality, and he will consult on a detailed draft in spring about how this improvement will be achieved.
He stated that the Government will “continue to explore the appropriate tax treatment for diesel vehicles and will engage in stakeholders ahead of making any tax changes at Autumn Budget 2017”
“The Chancellor has fired a warning shot to diesel drivers, with the suggestion in the Budget document that a new tax regime covering diesel drivers could be introduced before the end of the year. This uncertainty is bound to be of concern to private and business motorists alike, who will be wanting urgent clarity on just what the Government plan to do.”
RAC chief engineer David Bizley
In addition, £960 million pounds has been put up for grabs to help tackle congestion on the roads which will help local authorities. £90 million has been allocated for the North and £23 million for the Midlands out of a £220 million fund
“What we certainly don’t want to see is a situation where local authorities have to take part in an expensive, protracted process simply to have the funds they need to sort out well known bottlenecks on our town and city centre roads.”
LeasePlan UK’s managing director Matt Dyer added: “The vehicle rental and leasing industry contributes around £25 billion a year to the UK economy and in 2016 the leasing industry accounted for more than half the number of new cars registered on the road. So, this news will be especially pleasing for UK businesses.”
Energy and transport taxes
April 1st 2017 will see the VED rates for cars, vans and motorcycles which were registered before 1st April 2017 increased by Retail Pices Index. From 1 April 2017, VED rates for cars, vans and motorcycles registered before April 2017 will increase by Retail Prices Index (RPI).
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