F&I Management & Training

THE autumn Pre-Budget Report could see the Government announce company car tax incentives on Euro5 emission compliant diesel cars.Favourable future treatment of Euro5- and Euro6-compliant diesel engines was mentioned in the 2007 Budget report and a Treasury spokesman says that tax breaks for cars and small vans were currently being considered with an eye to a possible announcement in the Pre-Budget Report.A 3% tax incentive on Euro4 diesel company car was introduced and then subsequently ditched a few years ago. The incentive on Euro5 models could be introduced from April 2008.Given that the Euro5 standard is not due until September 2009 for all newly introduced models of car, January 2011 for all new registrations and January 2012 for heavier two-tonne plus MPVs, 4x4s, LCVs and special needs vehicles, it would give an almost three-year window for early-adopting clean diesel drivers.Tougher Euro6 emissions limits have been outlined for 2014 and early-qualifying vehicles can also expect tax breaks.

DATED: 26.07.07

FEED: HC