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10 December 2009
YOUR CONCISE
GUIDE TO THE CHANCELLOR'S 2009
PRE-BUDGET REPORT
At GM UK Fleet, we recognise the importance that fleet
professionals will place on understanding the key points raised in
yesterday's Pre-Budget Report.
That's why we've produced this handy digest summarising the
key measures outlined in the Chancellor's speech.
Pre-Budget Report 2009
(PBR09)
VAT
rates to rise from 1 January 2010
A key element of the PBR09 was the
confirmation that VAT rates will revert to 17.5% with effect from 1
January 2010. A new price guide will be issued dated 1 January
with all prices reflecting the 2.5% VAT increase. It will be sent in
advance to all Fleet Customers on 22 December and will also be
downloadable from the GM UK Fleet Hub.
Vehicle Excise Duty
PBR09 confirmed reforms to Vehicle
Excise Duty (VED) for cars registered from 1 March 2001 onwards to
encourage the purchase and manufacture of lower-carbon cars. From
April 2010, new differential first-year rates of VED will be
introduced. There are no changes to this from the PBR09. Click here to visit the Tax Band
page of our GM UK Fleet Hub website to see the new first year and
standard rates for 2010/11.
Company Car Tax
For the Company Car Tax regime,
PBR09 confirmed that in 2012 the Government intends to remove the
10% category for cars emitting 120g of CO2 per km or less, and instead
extends the system of bands so that they increase by 1 percentage
point with every 5g CO2 per
km increase in emissions, from 10%. The Government can now confirm
that from April 2012 the 10% rate will apply to cars that emit 99g
or less CO2 per km.
Fuel Benefit Charge
To support public finances and encourage more
fuel-efficient travel, the PBR09 announced that from 6 April 2010,
the multiplier used to calculate the tax payable on free fuel will
increase from £16,900 to £18,000. Tax on free van fuel will also
increase from £500 to £550 on the same day.
Low carbon vehicles
The Chancellor announced that he is
increasing support for low-carbon vehicles through exempting
electric cars from company car tax from 2010 for a 5 year period,
introducing a 100% first-year allowance for electric vans and
investing a further £30million on low-carbon transport projects.
As a world leader in electric/hybrid
vehicles, GM is currently investing massive resources in low-carbon
vehicles with a view to delivering low CO2 models in the short to medium
term; this will be of major benefit to business users.
This is fantastic news for the
revolutionary Vauxhall Ampera, our extended range electric vehicle.
Click here to visit the
Ampera microsite to discover more about its Voltec electric
propulsion system which provides lively acceleration and high levels
of refinement.
Government's Scrappage Scheme
The temporary vehicle scrappage
scheme was announced at Budget 2009. More than 274,000 orders have
already been placed through the scheme. This has provided a
much-needed boost to the automotive and trades sector and is
particularly beneficial for fleets operating a limited number of
older vehicles. Attempting to build on this success, the Government
announced in September 2009 that it would provide a further
£100million for the scheme, to support up to a total of 400,000
vehicle sales. The Programme finishes at the end of February 2010
(or when funds are exhausted).
Tax Advice Statement
Please note that the above does not
constitute VAT advice provided by GM UK Fleet and as such customers
should seek the advice from their Tax Office where guidance is
required on matters related to the VAT rate change.
We trust you will find this information useful in planning your
fleet requirements for the coming months. If you have any further
questions as to how the Chancellor's announcements affect the models
making up the GM UK Fleet portfolio please contact our Information
Centre on 0870 010 0651* or email gmukfleet@uk.gm.com
Yours
sincerely
Maurice Howkins
Fleet Sales Director
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