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October 27th 2021

Autumn Budget 2021: proposed increases to van benefit charge and fuel benefit charges

Today's announcement proposes that the van benefit charge and the car and van fuel benefit charges be increased by the Consumer Price Index from 6 April 2022. The flat-rate van benefit charge will increase to £3,600; the multiplier for the car fuel benefit will increase to £25,300; and the flat-rate van fuel benefit charge will increase to £688.

The changes will have effect on and after 6 April 2022.

Legislation will be introduced by statutory instrument, amending sections 150(1) and 161(b) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) to increase the cash equivalent of the fuel benefit charges for cars and vans respectively based on the September 2021 Consumer Price Index figure.

The Van Benefit and Car and Van Fuel Benefit Order 2021 (SI 2021/248) set the charges for 2021 to 2022. It set the van benefit at £3,500, the car fuel benefit multiplier at £24,600 and the van fuel benefit at £669.

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