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Budget 2015

The announcement of the 2015 Budget meant the implication of a few changes impacting on fleet.

These changes have a substantial impact on fleet, which may encourage companies of all sizes to reassess how they fund their company vehicles.

The key changes are as follows:

  • Company Car Tax
  • Fuel Duty
  • Annual Investment Allowance
  • VAT fuel scale charge
  • Vehicle Excise Duty


Company Car Tax

The changes in Company Car Tax is to encourage companies to use more low CO2 emissions on their fleet, which in turn would generally produce better performance figures.

Fuel Duty

The plans to increase fuel duty in September 2015 has been scrapped, which means a welcome relief for companies. Despite this, companies should still look at ways to maximise fuel efficiency and review fuel expenditure.

Annual Investment Allowance

From 1st January 2016, the current AIA will drop from £500,000 to £25,000. This gives companies the opportunity to source new ways to fund their vehicles.

VAT fuel scale charge

The scale charges to be used from 1st May ’15 onwards is as follows:

C02 Emissions (g/km) Current VAT fuel scale charge, 12 month period From 1 May 2015, VAT fuel scale charge, 12 month period
120 or less 627 536
125 939 802
130 1004 857
135 1064 909
140 1129 965
145 1190 1016
150 1255 1072
155 1315 1123
160 1381 1179
165 1441 1231
170 1506 1286
175 1567 1338
180 1632 1393
185 1692 1445
190 1757 1501
195 1818 1552
200 1883 1608
205 1943 1660
210 2008 1715
215 2069 1767
220 2134 1822
225 or more 2194 1874


Vehicle Excise Duty

Vehicle Excise Duty rates will increase from the 1st April 2015, this aims to make higher emitting vehicles more expensive to run. This therefore impacts on the Whole Life Cost of running the vehicles. Total Motion can help you understand how your choices affect the cost of running your fleet, and help you to make the right decisions in the future.


These changes continues to support the Government’s objectives of a low carbon economy, which in turn implicates car policies, fuel provision and choice of vehicle.



Whilst every effort has been made by Total Motion to ensure that information given is not misleading, this material is provided only as an overview of the subject and is not a substitute for professional advice. No responsibility can be accepted by Total Motion for any loss nor liability occasioned by any person acting or refraining from action as a result of this Fact Sheet.