Budget 2009 news
* Budget details * The issues explained * What it means to you...
What's in Alistair Darling's second Budget that's concern for car buyers? Here's our summary of what's been announced and what it means for you.
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.
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
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