An End To Tax Incentives for Diesel Vehicles?

Published: 28 February 2017 | Category: Advice News


According to an article recently published by The Guardian, government ministers are under increasing pressure to end tax incentives for diesel vehicles by changes in the vehicle excise duty. Many of our clients make use of diesel vehicles in the course of their work - they’re well-known for being more cost-effective in the long-term. That’s why we’ve decided to bring you this update on what’s in store for diesel vehicles going forwards.

What’s Changing?

Unfortunately, part of what makes diesel vehicles so cost-effective is the fact that they are tax-incentivised. It’s looking unlikely that this state of affairs will continue however, as the Transport Secretary Chris Grayling recently indicated. Sadiq Khan, Mayor of London, has also come out against the tax advantages offered to diesel vehicles.

This is a fairly abrupt turnaround from the previous stance of officials, which was to encourage both business and private consumers to purchase diesel vehicles.

Why Are They Doing This?

Essentially it comes down to the emissions these diesel vehicles put out. Back in November the High Court ruled that the government’s plans for cutting air pollution were so bad they were actually illegal. This means that the government is forced to act more drastically on the issue of air pollution. It looks like this is going to particularly affect diesel vehicles, since they produce so much nitrogen dioxide, a pollutant.

How Will This Affect Me?

It’s possible that if you own a diesel vehicle, or even run a small fleet of diesel vehicles for your business, that this could have serious effects on you. It may no longer be so cheap to acquire and run these diesel vehicles, and there’s also no telling what steps the government may take next to further reduce the number of diesel vehicles on the road.

There’s been talk of the government offering compensation to owners of diesel vehicles under a vehicle scrappage scheme, but nothing has been confirmed yet.

Here at Turner & Turner, we do our best to keep our clients up to date on any changes to tax, accountancy and finance that could potentially affect them. It’s just one part of the great service we offer here, so if you’re in need of the services of qualified Chartered Accountants, why not get in touch today? Call us on 01772 716 555 or fill in our online contact form, and we’ll get back to you!