Emergency Summer Budget 2015: Fleet Updates

The Chancellor of the Exchequer delivered the 2015 emergency summer Budget to Parliament on Wednesday 8 July.

Here's a speedy summary of the facts which will affect the future of UK business fleets.


First MOT at 4 Years

The government will consult on extending the deadline for new cars to have their first MOT test from 3 years up to 4 years, which they claim would save motorists over £100m a year.


2017 Vehicle Tax Changes

From 2017, new cars will pay a variable vehicle tax rate which remains linked to CO2 emissions but, beyond the first year, drivers will pay a flat vehicle tax rate of £140 on most cars. There are two exceptions: cars with zero carbon emissions are exempt from paying any vehicle tax and cars which cost more than £40,000 must pay an additional £310 annual surcharge on top of the £140 standard rate.

Vehicle Tax (VED) rate table for new cars registered on or after April 1 2017:

 

 

*Cars which cost more than £40,000 and have 1 g/km or higher CO2 emissions incur an additional £310 annual surcharge on top of the standard rate for 5 years.

 

Looking too far ahead for you? No problem, here's the vehicle tax rates for 2015/16 >>


Insurance Premium Tax Increase

From November 2015, insurance premium tax is being increased from 6% to 9.5%.


Fuel Duty Frozen

Fuel duty remains frozen for another year.

 

Looking for information on the March 2015 budget? Have a read of our spring 2015 budget blog article >>