The move will mean added pressure for fleets and fleet drivers to switch away from free private fuel.
Meanwhile the Chancellor also announced that the main Van Benefit Charge (VBC) rate will increase in line with inflation from 6th April 2015.
However, the Government will extend VBC support for zero emission vans to 5th April 2020 on a tapered basis. In 2015-16 the VBC rate paid by zero emission vans will be 20% of the rate paid by conventionally fuelled vans, followed by 40% in 2016-17, 60% in 2017-18, 80% in 2018-19 and 90% in 2019-20, with the rates equalised in 2020-21. The Government added that it will review VBC support for zero emission vans in light of market developments at Budget 2016.
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