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Changes to car tax coming??


Greenmamba
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Interesting...Guess its to discourage people from buying high emission cars in the first place. That's the only conclusion I can draw from the proposal. Going to be cheap to tax a second hand scooby in 2020 though 😂 140bucks!

http://www.autoexpress.co.uk/car-news/consumer-news/88369/car-tax-bands-what-you-need-to-know

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Yes, this is all a bit confusing. Basically because the rules are new and completely throw today's stuff on its head, this flies in the face of what the regs are today. I'll try to break it down a bit as there is a lot of stuff going on here. 

  • Only cars registered after 1 April 2017 change. Your car you own today does not change and will never change. However, there is speculation that maybe in a few years everything will be pegged to the same rate but, frankly, don't pin your hopes on it. Why would the govt want to take in less cash than they are today ? This is the drive for this change.
  • Today, 80% of motors registered pay no road tax. Zero rated. The real world driving emissions that will be introduced later this year, to record the car's actual g/km, was going to fix that. But it seems our "stupid" govt have thrown that out and gone to this new system. We'll see if it generates more or less revenue.
  • "Stupid ?" Well maybe it isn't and there are some real winners and a lot of losers here. There will be 3 bands:-
    1. True 0g/km emissions will be zero rated. So only Battery electric vehicles. Yes, yes - I know that the charging of these only moves the emissions from your tailpipe to the power plant and there is a lot of argument about how clean these are. But for the sake of vehicle tax, these are the only £0 motors from 1 April 2017 (remember registered from that date).
    2. All cars (that are not Battery powered) that are under £40,000 will be charged at £140 per year. So go out and buy a gas guzelling Mustang at 19mpg in the book, that car becomes £140 pa. Cracking isn't it! No more £530 for the Muzzy. However, there is a sting. The new car purchase tax doubles from £1000 to £2000 (doing this from memory - I am sure that one of those links above shows what it is). Even our own WRX STi will be at £140 pa but does have a hefty purchase tax. That's because the purchase tax is still based on CO2 emissions.
    3. All cars over £40,000 will have the £140 and a further £310 pa, for 5 years only, as a sort of luxury tax. So that fact you can buy a car that dear, the govt want the cash from you, as you should be able to afford it with your £80k BMW or Land Rover. After 5 years, the vehicle becomes £140 p/a.
  • I mention "stupid" above. The issue is that we have some misfits. Given there is so much focus on pollution, I can't quite get what the govt are doing. So I pointed out the Mustang, probably the thirstiest, dirtiest motor less than £40k and benefits from £140 p/a. That's a £400 saving p/a over today's version and that will quite quickly eat into the new car tax hike, just that one off payment. Then you have the Tesla, a zero rated car but because it is over £40k, it has to have this circa £500 tax p/a. I get that it's a bit of a nonsense so many people paying nothing and effectively all of those cars are churning up our roads, paying nothing, which is rediculous. But the Mustang and the WRX are bit at odds with the Tesla. OK, I am not complaining as this rewards fast cheaper motors. But it is a bit strange.

Unless you buy new cars every 1 or 2 years, most of us will have to wait to benefit from this on this forum I am sure. But a lot of people are sweating on this. I am looking forward to a car in the future with a £140 road tax and have a decent bit of performance - as I am sure so are you. But 2 million of the 2.5 million new car buyers in 2017 are going to find that their road tax bill has just inflated quite significantly. If you've been used to £0 or £30 road tax p/a for many years, if you decide to change your car for a new one later in 2017, suddenly the £140 annual bill is going to hit hard.

It's funny how perspectives are at odds - I am looking forward to the reduction and most are looking at it as a nightmare. As someone said above, there'll be loads or pre-reg's through April and May and March might be a bumper sales month as this will be the last chance to get a new car at £0, £20, £30 road tax car for anything that isn't Battery powered.

 

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