Fleets to count the cost of "showroom tax" this April
From 1 April new vehicles with high levels of CO2 will see a dramatic increase in VED at the showroom.
Currently a "Band M" vehicle – a Range Rover or Porsche Cayenne, for example – would attract £405 on registration, but the first-year rate from April will more than double to £950. Also in the second year, although the rate drops, at £435 it will still be £30 higher than current bandings.
Conversely, very low-emitting vehicles will benefit – sub-100g/km will be zero rated and alternative fuel cars including gas-propelled vehicles, and those capable of being propelled by petrol and gas or electricity and petrol/diesel (hybrids) ,will be charged at a marginally lower rate.
Masterlease has written to all of its customers to remind them of the changes including a comparison table for those in the market for new vehicles post 1 April.
And it is advising fleets to factor the new showroom tax in their choice lists.
Clive Forsythe, sales and marketing director for Masterlease, said: 'If fleet managers have not already reviewed their fleet policy and choice lists now is the right time, particularly for those vehicles emitting 160g/km CO2 or more which – in line with last year’s changes to capital allowance and lease rental restriction – are the most affected.'
Masterlease also says that its quotation systems were updated from 1 February to include the impact of the new first-year rate. Where this will be negatively affected, the company has pledged to make every effort to deliver vehicles currently on order before 1 April.For more of the latest industry news, click here.