Reinstate The 25Year Rolling Road Tax Exemption government response

[dinoy]

Dear dinoy,

The Government has responded to the petition you signed – “Reinstate The 25Year Rolling Road Tax Exemption”.

Government responded:

Classic vehicles are an important part of the UK’s heritage. We already offer a 40 year rolling exemption. Around 10,000 classic vehicles each year become exempt, so owners no longer have to pay VED.

The classic car industry employs around 28,000 people in the UK and the Government considers classic vehicles to be an important part of the nation’s historical and cultural heritage. In recognition of the contribution made by this sector, at Budget 14 the Government announced a new affordable Vehicle Excise Duty (VED) exemption for classic vehicles. This was defined as vehicles first registered over forty years previously. It will be rolled forward, allowing new cohorts of historic vehicles to be included in the exemption on 1 April each year. Currently, all vehicles manufactured before 1 January 1975 are eligible to apply for the exemption with the Driver and Vehicle Licensing Agency.

It is estimated that an additional 10,000 classic vehicles will be affected each year meaning their owners will benefit from not having to pay current VED rates of £145 or £230 depending on vehicle weight and engine size.

The Government is working to deliver a long-term economic plan to repair the public finances and will continue to take the difficult decisions to achieve this goal. Therefore, the Government currently has no plans to re-introduce a rolling twenty-five year exemption for this category of vehicle.

The Chancellor of the Exchequer keeps all taxes under review as part of the regular Budget process.

HM Treasury

Click this link to view the response online:

https://petition.parliament.uk/petitions/119497?reveal_response=yes

The Petitions Committee will take a look at this petition and its response. They can press the government for action and gather evidence. If this petition reaches 100,000 signatures, the Committee will consider it for a debate.

The Committee is made up of 11 MPs, from political parties in government and in opposition. It is entirely independent of the Government. Find out more about the Committee: https://petition.parliament.uk/help#petitions-committee

Thanks,
The Petitions team
UK Government and Parliament

 

[TheFoX]

In recognition of the contribution made by this sector, at Budget 14 the Government announced a new affordable Vehicle Excise Duty (VED) exemption for classic vehicles.

Affordable by who?

I still think that VED should be charged on the fuel you buy, so the more you use, the more you pay, and if your vehicle is sat on your drive just looking good, you pay nothing.

According the government figures, my mothers old SportKA was more contaminating than my C Class, yet my C Class pumped out more contaminants simply because it was used more. No government can justify a tax on engine output alone, because you need a formula that uses volume x time.

If car A pumps out four times the volume of car B, yet only runs for a quarter of the time that car B runs, then they both emit the same quantity, give or take a very small margin.

If car A and car B pump out the same amount, according to government figures, yet car A is poorly maintained, then car A will eventually emit more.

 

[camerafodder]

Affordable by who?

I still think that VED should be charged on the fuel you buy, so the more you use, the more you pay, and if your vehicle is sat on your drive just looking good, you pay nothing.

According the government figures, my mothers old SportKA was more contaminating than my C Class, yet my C Class pumped out more contaminants simply because it was used more. No government can justify a tax on engine output alone, because you need a formula that uses volume x time.

If car A pumps out four times the volume of car B, yet only runs for a quarter of the time that car B runs, then they both emit the same quantity, give or take a very small margin.

If car A and car B pump out the same amount, according to government figures, yet car A is poorly maintained, then car A will eventually emit more.

I agree. I also feel the premise of the petition was flawed as I don't think anyone owning, maintaining and driving a classic car would be considering £145 to £230 a year much of a barrier to such an activity.

 

[Charles Morgan]

I don't think anyone owning, maintaining and driving a classic car would be considering £145 to £230 a year much of a barrier to such an activity.

Correct, it's a nonsense. I'm in favour of 25 year limit, but with a sensible tax level when given classic car status - say £100 a year. There are administrative costs and I think it important that people who drive cars make some contribution. They can always SORN the car if it doesn't get used.

 

[def90cars]

Correct, it's a nonsense. I'm in favour of 25 year limit, but with a sensible tax level when given classic car status - say £100 a year. There are administrative costs and I think it important that people who drive cars make some contribution. They can always SORN the car if it doesn't get used.

As of next year all cars will be £140 after year one.
The first year the amount depends on the emissions.

Every car paying the same amount each year..... sounds familiar.....

 

[Red C220]

As of next year all cars will be £140 after year one.
The first year the amount depends on the emissions.

Every car paying the same amount each year..... sounds familiar.....

Unless they were more than £40K new, in which case there is a £310 supplement for the first 5 years (total £450 per year).