Budget 2009 news
It's official. There will be a car scrappage scheme, starting from next month. Cars more than 10 years old will qualify. The scheme is confirmed until March 2010. Chancellor said that discounts of up to £2000 will be available, but we think that will be made up of a £1000 Government grant and £1000 from car manufacturers.
Scrappage Scheme: the details
Fuel duty will go up 2p in September. It will go up by a further 1p in April next year and he expects increases of 1p a year above the rate of inflation for the next four years. He did say that he will continue to monitor oil prices.
Company car tax
From April 6 2011, the CO2 emissions thresholds for Company Car tax bands will be shifted down by 5g CO2 per km.
The £80,000 cap on company car list prices for the purposes of calculating company car benefit will be abolished, to ensure the drivers of the most expensive company cars pay a fair amount of tax.
Discounts for early-uptake Euro 4 standard diesel cars, higher emitting hybrid vehicles, gas-powered and biofuel-capable cars will be abolished in favour of a system that simply rewards tailpipe CO2 emissions.
Chancellor commits the UK to cut its carbon emissions by 34% by 2020.
Need a refresher on car tax rates? See what the Chancellor said in his pre-budget report last year. Road tax: 2009, 2010 and 2011 charges