Vehicle Excise Duty - Budget 2015

[SteveS]

From the BBC website:

"For new cars, the duty in the first year will be set according to emissions, like today, but updated for new technology. Thereafter there will be three duty bands - zero emission, standard and premium."

Anyone care to venture a guess on where this is going...

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[croyde]

Mmmm. Currently I have paid the deposit for my car at the pre Ford and last VED increase.

Suppose Ford can turn round and say that the tax increase is nothing to do with them.

Fingers crossed that the highest amount that the V8 comes under remains around the same as the government will be filling their boots with the extra from all the slightly lower emission cars that now find themselves in the Top band.

 

[Travel Lad]

Makes more sense to chase the bottom of the emmission pile as that is where the vast majority of motors are hiding now and are already on the road. If you bump the top end you end up getting less over the years as you push people out. Hit the bottom end for a little bit and you get that all the time. Fingers crossed that's where they go with it.

 

[SteveS]

More info, again from the BBC website:

"Major reform to vehicle excise duties to pay for a new road-building and maintenance fund in England

New VED bands for new cars to be introduced from 2017, pegged to emissions - 95% of car owners will pay £140 a year"

Not sure if this means we'll be OK as our cars will be registered prior to 2017 but if 95% of owners are paying £140 that could suggest that the other 5% are being hammered. It could also mean that all those conscientious drivers that bought ultra-low polluting cars are now going to be thanked with higher VED though.

The "England" bit is also a worry as if this is a devolved issue the SNP could well hit all those with vehicles not powered by the wind... ;)

 

[Stark]

It's not 100% clear as to what this shake up will actually shake up lol. I can see that he wants people who own cars who are currently paying no tax to pay tax so that the money can go in to the roads they drive on. This to me is fair because they should pay for something they use and wear out overtime along with the rest of us. However it's not clear what the new VED bands consist of and what the final 5% will be paying if 95% are paying £140.....

Also read on here http://www.theguardian.com/uk-news/...s-green-car-tax-overhaul-to-fund-roadbuilding the rise of insurance premiums!!
"chancellor announced that from November 2015 insurance premium tax would rise from 6% to 9.5%."

 

[deep south]

More info, again from the BBC website:

"Major reform to vehicle excise duties to pay for a new road-building and maintenance fund in England

New VED bands for new cars to be introduced from 2017, pegged to emissions - 95% of car owners will pay £140 a year"

I read this to mean that the 95% of people today who pay zero, £20 and so on up to £140, will all start to pay £140 from 2017 - as a minimum, so the higher bands will still exist, and still pay more.

So much for "general taxation" - if he is going to do this, why isn't the revenue from VED today used for road-building and maintenance?

 

[StarWarsJez]

It's typical government policy (either colour) of taxing those who are already paying their taxes - since it's the easiest (cheapest) to administer.

As opposed to really coming to grips with those who don't have insurance (and before anyone says, yes there are solutions the police can use to counter this - however they simply are not putting enough effort info enforcing it, relying instead of cheap automated speeding ticket revenues.

(rant over!)

 

[Monty]

As I understand it, the three bands refer to,

£0 - for all zero CO2 cars
£140 - for everyone else including all mustang drivers
£450 - for cars over £40000 until the car is 5 years old - then goes down to £140

Unfortunately, it looks like we'll (2015 mustang drivers) miss out and be stuck paying the current higher rates for the lifetime of our cars.

"The new VED bands will only apply to new cars from 2017 onwards – Osborne insists no one will pay more in tax for vehicles they already own"

 

[Monty]

So much for "general taxation" - if he is going to do this, why isn't the revenue from VED today used for road-building and maintenance?

Osborne did say,

“I will return this tax to the use for which it was originally intended. I am creating a new roads fund from the end of this decade – every single penny raised from VED in England will go into that fund to pay for that sustained investment our roads so badly need.”

 

[Stark]

As I understand it, the three bands refer to,

£0 - for all zero CO2 cars
£140 - for everyone else including all mustang drivers
£450 - for cars over £40000 until the car is 5 years old - then goes down to £140

What I'm not sure on is if we'll (2015 mustang drivers) be stuck paying the current higher rates or if it will go down in 2017. Judging by past experience, I suspect the former.

"The new VED bands will only apply to new cars from 2017 onwards". I assume this means registered in 2017 onwards?

Where did you get the £450 figure from mate out of interest?

Also I am with you on the fact that cars built before 2017 will be stuck paying the existing prices £550 for the GT and not reduce to the £450 price.

 

[slowhand99]

As I understand it, the three bands refer to,

£0 - for all zero CO2 cars
£140 - for everyone else including all mustang drivers
£450 - for cars over £40000 until the car is 5 years old - then goes down to £140

What I'm not sure on is if we'll (2015 mustang drivers) be stuck paying the current higher rates or if it will go down in 2017. Judging by past experience, I suspect the former.

"The new VED bands will only apply to new cars from 2017 onwards". I assume this means registered in 2017 onwards?

Not all Mustang drivers. Convertible GT Auto with custom pack is £40300.

 

[Monty]

Where did you get the £450 figure from mate out of interest?

Also I am with you on the fact that cars built before 2017 will be stuck paying the existing prices £550 for the GT and not reduce to the £450 price.

It's in the budget. Also, this table seems to be doing the rounds. May have been in a press release? It's £140 + £310 supplement for 5 years for cars over £40000

 

[Monty]

Not all Mustang drivers. Convertible GT Auto with custom pack is £40300.

Oh yeah, forgot about the recent £1000 price hike. So you don't get your chrome surrounds on the convertible (that you pay for), but get a huge tax bill instead!

 

[SteveS]

It's in the budget. Also, this table seems to be doing the rounds. May have been in a press release? It's £140 + £310 supplement for 5 years for cars over £40000

That certainly seems to button it up! To be honest I'm not too bothered about paying what I originally signed up for. It would have been a kicker had the yearly tax been doubled or something like that.

Just as well that first year tax increase is for 2017 cos that one increase we'd have probably had to pay.

 

[Monty]

Just as well that first year tax increase is for 2017 cos that one increase we'd have probably had to pay.

An upside for us is the lower first year rates. £2K for the V8 is eye watering! On the flipside, in years to come, if you are trying to sell your MY2016 V8, it will be more difficult as everyone is going to want a 2017 registered model due to the huge difference in VED.

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