The van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index from 6 April 2021. The uprate will take effect as follows:
- Van Benefit Charge will uprate from £3,490 to £3,500
- Car Fuel Benefit Charge multiplier will uprate from £24,500 to £24,600
- Van Fuel Benefit Charge will uprate from £666 to £669
This measure is being announced outside of the normal fiscal process to ensure employers and HMRC are given enough time to prepare for the uprate, ahead of the 2021-22 tax year.
The Government will lay the statutory instrument to uprate these charges before the House on 9 March 2021. A tax information and impact note (TIIN) will be published at Budget 2021 and will be available at www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
This statement has also been made in the House of Lords