The above increase for the 2018/19 tax year by the value of the Retail Prices Index (RPI) at September 2017...

This was confirmed at the Autumn Budget in November 2017 and the necessary Van Benefit and Car and Van Fuel Benefit Order 2017 has amended the relevant sections of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA).

The following apply next tax year:

Car Fuel Benefit

ITEPA section 150 has been amended for the tax year 2018/19 and the table below shows the new rates compared to the values that applied in 2017/18:

Van and Van Fuel Benefit

ITEPA section 155 (Van Benefit) and 161 (Van Fuel Benefit) have been amended for the tax year 2018/19 and the table below shows the 2018/19 values compared with those for 2017/18:

Note

The Van Benefit Charge (VBC) exemption for zero emission vans is to be phased out on a tapered basis up to April 2022.

The tapered VBC rate was 20% for 2017/18 and increases to 40% for 2018/19.

The impact of the tapering is that drivers of zero CO2-emitting company vans (where the private use is significant) will see a percentage of the main VBC as 40% for tax year 2018/19.

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