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New Vehicle Excise Duty rules

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Hi,

I normally replace my car every 2-3 years using PCP, with the new rule coming in I will be keeping this one for considerably longer, perhaps until the Government realise their mistake when sales of cars over £40k collapse. Just FYI, they are loading the tax on cars of this type by £310 per year for 5 years. The first year rates for cars over 226gm/m are pretty horrendous as well.

 

The last chancellor dropped this on us just as he left, not a nice bloke.

 

Whats the general view?

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I dunno. Initially, it seems mad because it specifically targets anyone who wants an expensive car. Then I think perhaps it's an attempt to make those who have more, pay more. Then I think that's also nuts and very unlikely for a Tory government to bother with. 

 

I'm currently in the exact same position as you regarding changing/upgrading via PCP and I wonder if some bargaining power has been taken away because we'll all be so concentrated on getting the dealers to stump up the cost of the extra tax that we'll lose out on a larger actual lump sum discount.

 

Tl;dr:

 

It's nuts.

Edited by jannism

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Which is why 70% of all F10s are 520ds and the G30 will be even worse with more and more being 4 pot diesels.

 

It's really quite sad.

 

The Government will never reverse that decision as they would loose out on plenty of £££s.  Its the usual, the motorist is a soft target!

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Also, I think in the long term it'll keep expensive cars expensive, this could be a little step towards phasing petrol powered cars out? 

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45 minutes ago, dan101smith said:

Does £310 per year make that much difference though, given you can spread the payments monthly?

 

Its £310 plus the £140 tax.  The £310 is over and above the tax when car is over £40k.  

 

But 

32 minutes ago, duncan-uk said:

some models are all ready £500/yr :angry:

As Duncan points out there are already big money tax bills.

 

£40k isn't much for a decent set of wheels these days.  A decent 5er with some toys is half that again!

 

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1 hour ago, dan101smith said:

Does £310 per year make that much difference though, given you can spread the payments monthly?

 

That's £310 on top of the new car year one rate (rate based on emissions) then flat £140 rate for vehicles over £40k every year for the first 5 years.

 

http://www.autoexpress.co.uk/car-news/consumer-news/88361/tax-disc-changes-everything-you-need-to-know-about-uk-road-tax

Edited by ChrisKnottIns

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So that's £450 per year for the first five years, you need to earn about £700 to pay this as a 40% taxpayer. The miserable sod even hit the low emission cars, so much for not targeting the motorist. 

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To be honest this was one of the factors which made me change my car earlier.

 

PCP was up in May this year but didn't want to get hit for this extra cost, and if i read it right the £450 is from years 2-6 as you pay the increased first registration tax for the first year.

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20 hours ago, Steveo1 said:

...if i read it right the £450 is from years 2-6 as you pay the increased first registration tax for the first year.

 

I read it that it's the year one cost then £450 in years 2 to 5 inclusive. I might be wrong.

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The idea of penalising the motorist to encourage public transport use is, in some circumstances, a noble one.

 

Doing it with absolutely bugger all public transport infrastructure outside London Zone 6 is just a cruel and cynical one.

 

Dr Beeching may as well have been Dr Mengele.

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Hi,

 

As the composer of this thread I feel comment to the last reply is required, to compare Beeching, whilst a misguided individual with that Bast*rd Mengele is bordering on the offensive, whilst bad language is not allowed on this forum I for one feel that there are no words suitable to describe Mengele.

Thats my rant over, back to the swines that tax every movement we make. 

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So surely you just need to buy a 6 month old car to overcome these taxes?  Leave the new car purchases to companies . But then all cars will be standard spec.

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Surely though as much a taxation is repugnant. The private individual who can afford a say £50k new car can cover a few hundred quid?

Sent from my iPhone using Tapatalk

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On 20 January 2017 at 1:55 PM, nashdm2 said:

So what about used cars. If I buy a used vehicle that hits all these triggers, will I pay the same high value?

 

As far as I can tell, yes you would on a used vehicle if registered after 01/04/17. It doesn't matter if you are the first or twelfth owner!

 

If in over three years time, I was to have bought my car, and it was registered after 01/04/17, when the car was three years old, I would still be hit with the extra road tax. 

 

But what isn't clear from the horses mouth is.

 

15 hours ago, jake13 said:

 

They state "After the first 12 months, you will pay a rate based on the fuel the vehicle uses and an additional rate of £310 for the next 5 years."

 

They then state. "After 5 years, you'll pay the standard annual rate depending on what fuel your vehicle uses."

 

It's after 5 years, not when the car is 5 years old making the car 6 years old in total, meaning that it won't be till April 2023 before you can only pay £140 road tax, which won't be £140, it will have gone up by then!

 

 

But yes

21 hours ago, duncan-uk said:

The private individual who can afford a say £50k new car can cover a few hundred quid?

 

Will be what Mr O was thinking about.

 

Its when after 4 years old a £50k motor is only worth £15k to us buying used, is the hard pill to swallow till its 6 years old.

 

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