Key takeaways from the BVRLA regarding yesterday’s announcement.
The Budget and Spending Review confirmed additional funding to support the Government’s commitment to end the sale of new petrol and diesel cars and vans in 2030, and all new diesel vehicles by 2040. To support the uptake of electric vehicles, the UK Government will provide an additional £620 million for public charging in residential areas and targeted plug-in vehicle grants.
It has been confirmed that the Company Car Tax (CCT) rates already announced for 2022-23 will remain frozen until 2024-25.
The Budget and Spending Review provides £416 million of UK-wide R&D funding for programmes to help commercialise low and zero emission transport technologies, including trials of three zero emission HGV technologies.
Government will introduce a new temporary business rates relief for eligible retail, hospitality and leisure properties for 2022-23. Eligible properties will receive 50% relief of up to £110,000 per business. Further guidance clarifying eligibility will be published later in the year.
From 2023, a new business rates relief will support investment in property improvements so that no business will face higher business rates bills for 12 months after making qualifying improvements to a property they occupy. The Government will also introduce exemptions from 2023 for eligible plant and machinery used in onsite renewable energy generation and storage, such as rooftop solar panels and battery storage for electric vehicle charging points, in addition to a new 100% relief for eligible heat networks, to support the decarbonisation of buildings.
Has been suspended for a further 12 months from August 2022.
Freeze continues for 2022-2023.
Will remain frozen for the twelfth consecutive year.
Government will uprate Vehicle Excise Duty (VED) rates for cars and vans in line with inflation (RPI) from 1st April 2022.
The van benefit charge will increase in line with the Consumer Price Index (CPI) from 6 April 2022. The flat-rate van benefit charge will increase to £3,600.
The Car and Van fuel benefit charge will also increase in line with CPI from 6 April 2022. The multiplier for the car fuel benefit will increase to £25,300; and the flat-rate van fuel benefit charge will increase to £688.
The Spending Review and Budget announced an increase in capital support to £817 million over the Spending Review period for the electrification of UK vehicles and their supply chains. This will ensure the UK’s automotive sector is at the forefront of the transition to zero emission vehicles by supporting investment into zero emission vehicle manufacturing and gigafactories.
The Government will support UK businesses by extending the temporary £1 million level of the Annual Investment Allowance (AIA) to 31 March 2023. This will provide businesses with more upfront support, encouraging them to bring forward investment, and making tax simpler for any business investing between £200,000 and £1 million.
The Government will legislate to be able to introduce a Second-hand Motor Vehicle Export Refund Scheme. Under such a scheme, businesses that remove used motor vehicles from Great Britain for resale in Northern Ireland or the EU may be able to claim a refund of VAT following export. This will ensure that Northern Ireland motor vehicle dealers will remain in a comparable position as those applying the VAT margin scheme elsewhere in the UK.
Motor vehicles first registered in the United Kingdom prior to 1 January 2021 will be available to sell under the VAT margin scheme in Northern Ireland, until the Second-hand Motor Vehicle Export Refund Scheme comes into effect.
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