Pre-Budget Report – Van Benefit Charge – Electric Vans
The Chancellor announced a new measure aimed at employees and company directors provided with an electric van which is available for private use.
With effect from 6 April 2010 a new, nil flat rate benefit charge for electric vans will be introduced. The new reduced rate will apply for five years and will replace the current £3,000 flat rate charge for company vans provided for private use.
The new legislation will include a definition of ‘electric van’ for the purposes of these new rules.