Motorhome VED Changes
I have recently read that new tax rates will be implemented for motorhomes this autumn that could see a huge rise for vehicles costing more than 40k. Has anyone any further details?
Moderator Comment - Title edited
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I didn’t know it had been raised before. I find the search function on this site next to useless
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Hmmm, thats decided it for us then, NO trading in our van against a new one. Must be thousands of others feeling exactly the same?
Watch for more 'Lunar's' out there, in months to come, nothing to do with Brexit and All to do with tampering with car tax levels.....stupid.
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It applies to all cars with an RRP of £40,000 or over, and I was wondering if that applied to motorhomes too. From 1 April 2017, all cars in this bracket would carry a first registration tax, variable according to CO2 band. Then from year 2 to year 6 they would all carry a tax of £450, and after that all revert to a lower annual tax of £140.
But, from 1 April 2019, for a car, our crafty chancellor moved the goalposts - now it is £465 for petrol or diesel, £320 for electric and £455 for alternative. The new rate increase is part "wealth tax" and part CO2 emissions. The question is, will pre-1 April 2019 cars also carry the later tax? If so, this would be a show of dishonest intentions by the government by (a) raising the CO2 charge (again), and (b) by increasing the "wealth tax" charge on an historical purchase. The latter, IMHO, seriously smacks of bureaucratic fraud. It is also out of disposable income that has already been subjected to income tax.
These later figures were obtained from the gov.uk website, but they do not indicate whether or not they will be back dated.
I assume motorhomes are suffering the same money-grabbing penalties!!!
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Problem is, for any motorhome with an RRP of £40,000 or more (the government do not recognise discounts), you would have to buy one no less than six years old. The charge continues to apply until after the sixth years, regardless of how many owners it has had during this time.
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Apologies. I should have said, "you would have to eventually buy one no less than six years old, or one that was registered pre-April 2017."
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There is an informative thread on the MMM site.
https://forums.outandaboutlive.co.uk/forums/Motorhomes/Motorhome-Matters/Road-Tax/51028/#M614217
that might be of interest
rgds
Link Edit
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OK, read that, SO it appears that nothing has changed ? Provided Converters do NOT put a final emission amount on the COC, and how can they ?as they dont have the testing equipment, especially some small converters. Then road tax for 3500kg and under stays at £265 and NO punitive over £40000 tax (not many new motorhomes are under £40000 these days). Over 3500kg stay the same as PHG at £165.
We accept Euro 6 engines, why do they keep muddying the water.....very bad for the Motorhome Industry and is scaring prospective customers?
Motorhomes are LONG term purchases, many will still be in use in 20 years time or at least useable, some still with the same owner.
And sales are strong...stop scaring the market.
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You have got it wrong, rayjsj. The £40,000 and over applies to both cars and motorhomes, and this is clearly stated in the government website, and which can be found by following the link provided by TonylshUK.
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Looks like things are changing from 01/09/2019, will put the brakes on Motorhome sales for sure
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Put the brakes on, it will kill them stone dead ! We will definitely Not be trading our 2014 motorhome in for a new one any time soon.....we will make it last. As we have with our 2010 car,which has car tax at £30. Surely the opposite effect to what they are hoping ? Do they WANT us to buy newer more eco friendly vehicles ?
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Ray, I don't think 'they' actually want us to buy any sort of vehicle....were inundated with them...just look at today's average fleet outside their houses.....three or four cars...
parking, anywhere, is a nightmare..
the inclusion of MH into the general vehicle taxation system was always going to come, but why does a cleaner van attract more tax.
the base vehicle manufacturers have been clobbered until they produce cleaner and cleaner engines yet users of these clean machines still get clobbered again..
ill stick with what we have, and head for places with large open spaces and still welcome us...
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It seems odd that the have only applied this "light goods vehicles" They seem to have missed the opportunity to apply it to the heavier motorhomes which already have even lower VED. I wonder how long that will continue for? If you have the right licence we will have the ridiculous situation whereby manufacturers will suddenly produce heavier motorhomes to avoid the extra tax burden?
David
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"2.3 Stakeholderviews
Some industry groups think this change will damage sales of motorhomes. The National Caravan Council has called for an urgent minor amendment to the Finance Bill, to reclassify motorhomes as commercial vehicles for the purpose of VED. This campaign has been backed by the British Vehicle Rental & Leasing Association (BVRLA).4
HM Treasury have not indicated any intention to make such change
sums it up.
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In the scheme of things this is hardly going to be a massive money raising thing for the Government, in fact almost peanuts, as opposed to what it will cost the individual. The fact that it doesn't include larger motorhomes suggests no joined up thinking. If they were serious about emissions they would have taxed all base vehicles the same but that would upset white van man and no Government wants to do that!!!
Where have the Club been is countering this punitive tax?
David
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There is a Petition here on the Government website https://petition.parliament.uk/petitions/268246
David
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Petition now stands at 8300. I think it needs only to get to 10000 before the Government have to reply.
David
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I think the government has a reply ready already in draft form. It goes something like this...
" we have already offered incentives to encourage the sale of electric and less polluting vehicles and we intend to pursue this policy. Charging higher rates of tax following the purchase of large cars and motorhomes, priced over£40,000 and mostly powered by diesel, is part of this same policy.
We intend to draw up further legislation to require all Motorhome manufacturers to declare accurate pollution emission figures for their vehicles, something which many of them currently evade doing.
Further legislation will then follow to correct the current anomaly that allows users of very large motorhomes to pay less annual road tax than those who own and run a mini.
We believe these steps are in line with other current moves to improve environmental standards and we do not intend to withdraw them "
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An interesting discussion with a variety of links to information etc. which I personally found well worth reading so thanks to all who posted them. I feel various tweakings of taxing the general public’s personally owned transport, including M’home/LV conversions etc, will unfortunately most likely continue by this & probably any future governments - apart from exempt vehicles.
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That maybe so ET but at least they will have to publicly say that as their intention which up to this point they have been reluctant to do! I don't imagine signing the petition will change anything in terms of reversing the decision but it is a punitive tax and I say that as in the scheme of things it will raise very little money. However if they were to say that all vehicles would be taxed by their emissions that would be the fairer way of doing things. The policy is also one sided in that larger and probably even more expensive motorhomes will not attract the extra tax so there is no joined up writing on the taxation of motorhomes. Whilst none of us like new taxes they are easier to accept if they are fair and apply to everyone. Fortunately, having purchased a new motorhome in March, the extra annual tax won't apply to me!
David
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Hi everyone, you can read our article on LinkedIn about the Motorhome Vehicle Excise Duty (VED) 2019 here: http://bit.ly/2MnMhDZ
I understand not everyone is on LinkedIn so we will look to see if there's anywhere else we can publish the article for your reference.
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