Measures affecting consumers’ income
The Chancellor has announced that fuel duty will be frozen for the ninth year in a row.
From April 2019, personal tax allowance and higher rate tax threshold will be raised to respectively £12,500 and £50,000. National Living Wage will also increase from £7.83 an hour to £8.21.
In times when consumer confidence needs to be supported, the fuel duty freeze is positive news for UK motorists and the automotive industry. Additionally, the increases in personal tax allowance and the higher tax threshold will also grant UK consumers with more disposable income.”
Company car tax and VED
The government will review the impact of the Worldwide harmonised Light-vehicles Test Procedure (WLTP) on the Vehicle Excise Duty (VED) and company car tax systems.
NFDA will be engaging with the Government to ensure that the interests of retailers are safeguarded.
Tax Relief for Electric Charge-points
The government will extend the first-year allowance for electric charge-points for four years. This will extend such allowances until 31 March 2023 for corporation tax and 5 April 2023 for income tax purposes.
The Chancellor announced £420 million for councils to maintain and improve local roads — fixing potholes, repairing damaged roads and keeping bridges safe and open. A further £150million will help improve local junctions, streets and other community facilities An effective transport network is key to a stable and thriving economy. NFDA welcomes the Government’s investment into the UK’s transport infrastructure which will benefit the movement of both goods and people across the country.
Annual investment allowance
The annual investment allowance (AIA) will rise to £1 million from £200,000 for two years. This will be available from 1 January 2019 to 31 December 2020.
NFDA welcomes the rise in annual investment allowance which will help support automotive retailers’ investments in their dealerships.