Jesse Norman, Financial Secretary to the Treasury, has communicated the van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index from 6 April 2020. The uprate will take effect as follows:
- Van Benefit Charge will uprate from £3,430 to £3,490
- Car Fuel Benefit Charge multiplier will uprate from £24,100 to £24,500
- Van Fuel Benefit Charge will uprate from £655 to £666
This measure is being announced outside of the normal fiscal process to ensure employers and HMRC are given enough time to prepare for the uprate, ahead of the 2020-21 tax year.
The Government will lay the statutory instrument to uprate these charges before the House today.
A tax information and impact note (TIIN) will be published at www.gov.uk/government/collections/tax-information-and-impact-notes-tiins