Masterlease comments on the pre-budget report - Oct. '07

In response to the Pre-Budget Report, Clive Forsythe, sales and marketing director of Masterlease, said:

“Alistair Darling, in his first pre-budget report as Chancellor of the Exchequer, did as many people expected given his new appointment, and concentrated primarily on spending matters.

“Where the report did touch on cars and business travel there was little new. The Government did confirm that it will not consider the taxing of cars provided by an employee car ownership scheme. However, it has once again deferred the decision on the future of AMAP (approved mileage allowance payments) and relief available to employers in relation to company cars (capital allowances), probably until the Spring budget.

“Whilst we were not surprised by the lack of definitive announcements on company car policy in the report relating to capital allowances and CO2 emissions, there are however a number of changes that were previously announced that the industry needs to note will take effect from 6 April 2008. These include the reduction of the starting point for the new 15% band for CO2 based taxation to 135g/km and the introduction of a new 10% band for cars with a CO2 of less than 120g/km.

“The report announced bad news for many employees who receive free fuel as from April 2008 the fixed figure from which the fuel scale charge is to be levied is being increased from £14,400 to £16,900 which may result in many employers reviewing this benefit. However, the increase is in line with the Retail Price Index.

“Following such an uneventful Pre-Budget Report, the industry can now only look forward to the Spring when the new cabinet is more settled and ministers will perhaps provide some definitive answers to the outstanding issues.”