VED tax changes 2017

[ash59fifty-uk]

Interesting read explaining what will happen next year

Apologies if already posted~

http://thisisengland.org.uk/must-read-new-ved-road-tax-rules-plan-ahead-for-2017-uk-car-tax-changes/

 

[400ixl]

Well structure article to help people who will be looking for a car in 2017 decide when to buy.

 

[grober]

Only applies to new cars registered from 2017 mind.

 

[John]

So if you bought the most polluting car, you would be paying the thick end of £4k tax in the first 5 years.

Ouch.

Becomes a bargain at 5 years old - to by duty on it anyway...

 

[markjay]

In a way this was to be expected, whenever the government provides tax incentives to encourage desired behaviour (in this case the purchase of low-CO2 emissions cars), once they are successful they need to address the resulting shortfall in tax revenue.

It not too dissimilar to driving offences, i.e. in the unlikely event that we all drive at the legal speed limit and never park illegally - the official objectives or 'encouraged behavior' of safety cameras and traffic wardens - there would be a difficulty for the government in footing the cost of operating the cameras and wardens.

It is interesting that the new VED is based on both wealth and CO2 emissions (as opposed to CO2 emissions only at current), and that it is still not based on pollution but on again CO2 emissions (i.e. Diesels are still getting away with low VED).

I suspect that the omission (again) of the pullution element from VED is due to the fact that the government has signed-up to reducing CO2 emissions, hence national targets are based on CO2, not pollution?

But even so this does not explain the position of TfL, who base Congestion Charging in London on the government's national CO2 targets, rather than air quality in London.

You would have thought that a mayor's priority would be the immediate welfare of his/her city rather than combating global warming which is really more of a central government issue.

Perhaps this will be addressed in future by a Diesel tax in London.

 

[tuonopepper]

Well I'm confused.

Is it based on list price or invoice price?

Secondly if I buy a 6 month old demo or an 18 month old car am I going to be asking to see original invoice price?

I do like the fact I can now get a big dirty petrol and so long as it didn't cost more than 40k only have to pay £140 a year, good results for petrol heads on the face of it (unless I missed something which is quite likely!).

 

[Driver15]

Well I'm confused.

Is it based on list price or invoice price?

Secondly if I buy a 6 month old demo or an 18 month old car am I going to be asking to see original invoice price?

I do like the fact I can now get a big dirty petrol and so long as it didn't cost more than 40k only have to pay £140 a year, good results for petrol heads on the face of it (unless I missed something which is quite likely!).

I read it goes on the RRP of the car which is logged on registration. I assume thjs DVLA will host this information.

I also assume that joe bloggs buying at 3 years old will be able to do a tax enquiry online for the car which will detail the costs..

Makes you wonder if more cars on the road will be untaxed... as the fine for untaxed cars could start to be less that the VED

 

[Scooby_Doo]

Is it based on list price or invoice price?

It's based on RRP + on road costs + any extras.
If the RRP + on road = £39900 and you add say "privacy glass" for £150 then the new cost for the VED is £40500 which pushes you into the extra £350 a year band, so if you buy a 6 month old demo you need to be aware of any extras.
Although not relevant then, my MKII Audi TT had approx £4800 of extras fitted and we all know how easy it is to push up the price of a Merc with the nice toys.

 

[tec]

I do like the fact I can now get a big dirty petrol and so long as it didn't cost more than 40k only have to pay £140 a year, good results for petrol heads

That is from April 2017, Not now. I can see a big demand for models 350 and over from then, which will result in a big shortage of good cars with large engines in the used car market.

 

[tuonopepper]

That is from April 2017, Not now. I can see a big demand for models 350 and over from then, which will result in a big shortage of good cars with large engines in the used car market.

Yes sorry, meant now in a metaphorical sense I can see a 5 year old RS6 Avant on my shopping list.....

 

[tuonopepper]

That is from April 2017, Not now. I can see a big demand for models 350 and over from then, which will result in a big shortage of good cars with large engines in the used car market.

Yes sorry, meant now in a metaphorical sense I can see a 5 year old RS6 Avant on my shopping list.....so what are the most CO2 producing big engined fast cars for under 40k?

 

[st13phil]

It's based on RRP + on road costs + any extras.
If the RRP + on road = £39900 and you add say "privacy glass" for £150 then the new cost for the VED is £40500 which pushes you into the extra £350 a year band, so if you buy a 6 month old demo you need to be aware of any extras.

Its a return to the bad old days of the "special car tax" that was finally abandoned in the late 1990's that lead to the ludicrous practice of "dealer fitted options" post-sale which kept the list price under a threshold value. The difference this time is that (as far as HMG are concerned) it's the gift that keeps on giving - until the car enters its sixth year, anyway.

Some of us have longer memories than Mr Osborne, who has reintroduced a classic "envy" tax.

 

[TheFoX]

£40,000 is rather low for a luxury car threshold, I think. Take a bog standard C class, then put a few extras on it and suddenly the price shoots up to £42,000.

Will this move deprive the second hand car market of some super deals in the future? I think that most luxury car buyers won't be put off, but it would affect the fringe buyer, such as a someone who has just retired, from buying their dream car, and it may also affect the second hand market on vehicles less than five years old.

 

[bpsorrel]

I wonder whether lease deals will still include road tax (the deal I have includes VED for the term of the lease) or will the lease rates simply go up to accommodate the higher rates?

 

[st13phil]

I can see a big demand for models 350 and over from then, which will result in a big shortage of good cars with large engines in the used car market.

Ooh, I do hope so (says he who's just bought another E63 )

 

[Red C220]

I can't see £450 a year being a deciding factor in some buying a £75K car that does 15mpg.

It's the diesels and 2.0 petrols right on the £40K cusp that will take the hit.

Once you get above £50K it is what it is if you want that car.