Pre-Budget Report (PBR) 2006

Van benefit and van fuel charge

Van benefit charge increases to £3,000 from 6 April 2007, but the conditions under which the charge arises do not change. At the same time the van fuel benefit charge takes effect with a charge of £500.

We have produced an employer’s factsheet for further information and there is also a factsheet you can give to your employees.

Car benefit charge

There are no changes to the car benefit rules or thresholds for 2007-08 but the government are considering the case for an incentive in company car tax to support the take-up of ‘flex-fuel’ vehicles, capable of using high-blend bioethanol E85.