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ALISON HAYNES and RUTH PUNTER consider the likely impact of the new company van rules.
ALISON HAYNES and RUTH PUNTER consider the likely impact of the new company van rules.
SIGNIFICANT CHANGES TO the taxation of company vans will be introduced from April 2005. For many employees the changes will bring a welcome elimination of the van benefit charge they previously suffered but are there any broader implications and what opportunities do the new rules present for employers and employees? In this article we will set out the new rules and consider how they might affect the usage and choice of business vehicles their environmental impact and what actions employers should be considering. We will also look at the practical application of the new rules and whether they may be rather short-lived in their current form.
The current rules
Under the current rules (see ITEPA 2003 ss 155 to166) if an employee is provided with a company...
