Diesel car benefit saving goes up in smoke

New measures are targeted at diesel cars which were expected to benefit from a reduction in tax from next April. The Chancellor announced those reductions will now not be introduced.  

Following the VW emissions cheating scandal the Government has now reconsidered its policy on company car benefit taxation and has decided to retain the penal tax benefit that applies if your chosen company car uses diesel fuel.

Up to date the car benefit rate for diesel cars was 3 per cent higher than its petrol cousin. That differential was expected to be abolished next April, but in a U-turn the Chancellor has decided to retain the diesel premium, presumably to reflect the harmful emissions from such vehicles.

The measure will come as a big disappointment to the one in three company car drivers who use diesel cars.

If you would like advice on the topic raised, please contact Bill Longe.