News and Updates from CVSL

What does the 2016 budget means for motorists?

Fuel duty will be frozen again in 2016-2017
Chancellor George Osborne has announced that fuel duty has been frozen for the sixth consecutive year. The current fuel duty price is 57.95 pence per litre for 2016-17, which means that pump prices are now 18 Pence cheaper than they would have been if the Government had maintained pre-2010 fuel duty escalator plans. This will save the typical motorist £75 a year and £275 a year for a small business with a van.

Company car tax and allowances
100% First Year Allowance (FYA) for businesses to purchase low emission vehicles has been extended for a further three years. The threshold however has been lowered from 130g/km to 110g/km of CO2 and the FYA from 75g/km to 50g/km of CO2 from April 2018, to reflect falling emissions.

The chancellor also said he will continue to base Company Car Tax on CO2 emissions of cars and consult on reforming lower CO2 bands for ultra-low emissions.

Driverless cars
Driverless cars will be tested as soon as next year. The Chancellor has said that driverless cars would be trialled on a ‘’strategic road network’’.  The Government has said that it will be investing in driverless cars as it wanted the UK to be “a global centre for excellence in connected and autonomous vehicles”.