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Opticar Reacts To Chancellor’s Pre-Budget Statement

Jim Salked, managing director of Toomey Opticar, comments on the following extract from the Pre-Budget Statement made by Chancellor Alistair Darling on Tuesday 9th October 2007:

“The government recognises there are interactions between rates of company car tax (CCT), employee car ownership schemes (ECOS), tax-free mileage allowances (AMAPs), and tax relief on business cars, that work together to determine car purchase and usage choices. The government wants to ensure that the tax system properly reflects and supports business activity, in addition to promoting fairness and environmentally friendly travel.”

Jim Salkeld says: “This is an important statement from the government, and necessary to support the diversity of UK fleet. It has clearly accepted that businesses and employees alike have a right to select the most appropriate and cost effective car benefit arrangement available within a legitimate taxation framework.

“I am sure this will come as a welcome relief to businesses who have put their car policies on hold whilst the ECO review in particular was underway, and will enable more focus to be applied to key areas of fleet management such as suitability, safety and emissions.

Although a little disappointed that the AMAPs review has not produced any recommendations, I am not surprised, given the complexity of the argument and the lack of material data. Given these stated aims of fairness and environmental friendliness however, I would not expect to see any diminution of value in the rates themselves, but rather increased pressure on fuel costs such as illustrated with the increase in fuel scale to £16,900.”

For more information contact Opticar on 01582 518181.