The Van Benefit Charge will increase from £3,350 to £3,430 a year from 6 April 2019 in line with the Consumer Price Index, chancellor Philip Hammond revealed in his 2018 Budget.
The chancellor also said the flat-rate van fuel benefit charge will increase to £655 from £633.
The charge for zero-emission vans increased to 40% of the main rate in 2018/19 and will continue to step up on a tapered basis until 5 April 2022, rising to 60% in 2019/20, 80% in 2020/21, 90% in 2021/22 and coming in line with the standard charge in 2022/23.
The government also confirmed it would not introduce environmental incentives on Vehicle Excise Duty (VED) for vans before April 2021, a decision the BVRLA welcomed.
Chief executive Gerry Keaney said: “Tax incentives can be a very powerful tool in driving businesses to use cleaner vehicles, but it is no use having these until we have enough low-emission van options on the market.
“The BVRLA is pleased that the government has listened to its feedback on this issue and decided to take a pragmatic, business friendly approach to greening the van fleet.”
