The Finance Bill 2018-19 draft clauses include new measures that will address two anomalies in the Optional Remuneration Arrangements (OpRA) rules.
These measures will:
- ensure that when a taxable car or van is provided through OpRA, the amount foregone, which is taken into account in working out the amount reportable for tax and National Insurance contributions purposes, includes costs connected with the car or van (such as insurance) which are regarded as part of the benefit in kind under normal rules
- adjust the value of any capital contribution towards a taxable car when the car is made available for only part of the tax year.
The proposed legislation will ensure that the OpRA rules work as intended.
The Finance Bill 2018-19 will also introduce another car related measure that will see the introduction of legislation to remove any tax liability for charging electric cars or plug-in hybrids at or near a workplace. This measure will have retroactive effect from 6 April 2018.