This is an interesting change in today's budget, and is clearly in response to manufacturers reducing emissions faster than the bandings have changed - basically too many "ordinary" cars are paying £30 or less and reducing revenue.

 

http://www.bbc.co.uk/news/business-33447106

 

Existing cars will carry on under the current system, but anything bought new from 2017 will be taxed under the new system. Most cars will be a flat rate £140 a year with cars having a list price over £40k paying an extra £310, so £450 in total.

 

Pure electrics will be £0, and from 2020 the money raised will be ring fenced for road improvements, so the "Cyclists don't pay road tax" may have a point.

 

I agree that the current system needed a revamp but I think dropping any bandings based on emissions is a backwards step.

Scrap the whole scheme and put it on fuel. Those who do the most miles or driving inefficient cars pay more. No complicated administration involved, just a simple "you use more you pay more".

I personally think that Road tax should be based on Emissions and Weight, These cars that a low emissions paying nothing are still causing damage to roads. therefore the heavy 4X4 fashion icons will have to pay for the weight damage they cause. But the new bans will discourage people from buying New cars 

Edited 8 July, 201510 yr by Joe3490

I do not think it is up for debate, he did his budget announcement and it will be passed.

 

Road Fund Duty raised in England & Wales will be spent on roads in England and Wales.

Scotland & Northern Ireland we will no doubt hear at some point what is happening with monies they get in.

Too many people doing what the government wanted, and buy cars with low headline Carbons!

All my fault. I purchased a diesel Superb when fuel was cheaper than petrol and they increased fuel duty. I changed to a Civic Gt and paid extra VED. Got the Citigo for zero VED and now that will change. So I may as well cause maximum damage to roads and the environment because I will pay for it anyway. So wanted to be an ECO warrior, but, not anymore.

as said do away with it (no admin costs £30 fee will hardly cover it) and add it to fuel therefore fairly charged to those who drive most and/or use the thirstiest cars. Should be no extra cost as the revenue collection is there already.

Joke.

Losing too much money with low emissions cars

Same with fags, massive drive to get people away from them. Result.... Tax the arse off them to make up losses.

Then tax electronic ones that people are trying to use to get off the fags.

Wonderfull country

 Got the Citigo for zero VED and now that will change.

 

No it won't. Any cars bought before 2017 will continue to be taxed under the current system. The flat rate will only apply to new cars.

 

Car dealers can rejoice as there will be a flood of people making sure that they get a new car just before the cut off point to save £140 a year.

Do electric drivers with cars over £40k new pay £310?

No it won't. Any cars bought before 2017 will continue to be taxed under the current system. The flat rate will only apply to new cars.

 

Car dealers can rejoice as there will be a flood of people making sure that they get a new car just before the cut off point to save £140 a year.

Yes, I understood I can run the Citigo until it expires OR change it just before the change. I was being facetious!

I dont really care about the actual price, but why do they always have to change everything every few months for no reason. Talk about government cuts, think how much money could be saved by not changing everything all the bloody time. Why not just adjust the price of all the bands.

Edited 8 July, 201510 yr by Dr_Pepper

How is this every few months? We've had the current system since 2005, with annual increases in price.

Ok, but I didn't really mean just road tax I mean tinkering with everything. Why another new system

Scrap the whole scheme and put it on fuel. Those who do the most miles or driving inefficient cars pay more. No complicated administration involved, just a simple "you use more you pay more".

 

This'd suit me perfectly.  I cover about 8.5k miles a year and pay the £490 tax.  My colleague's husband pays nothing* as he's got a Lexus hybrid that averages about 45mpg in the real world (despite what the official figures say). He's covered just over 68k miles in 17 months of ownership.  Between the two of us, I know who's using the road more, burning more fuel and pumping out more CO2.

 

*edit - by nothing I meant hardly anything compared to the top rate.  I seem to remember it's £20 or thereabouts.

So this means my £20 a year tax stays when for ages people have been scaremongering that it will increase?

I guess so.

We will find out soon then if the UK MOT changes and gets stricter as the EU wanted when it does to the first Test / Examination being required at 4 years.

 

Allowing for how many cars in the UK fail at 3 years old, and how poor the UK servicing and maintenance schedules and guidelines can be, 

it will be down to car buyers to not accept some of the shoddy builds from Manufacturers, 

& rubbish Franchised Dealerships & 'Minor' Major 'Minor' Oil & Filter & 'Inspection' Services.

or Variable Servicing.

 

Maybe VW , Skoda, Seat & Audi will now come with a decent as standard Manufacturers Warranty,

or will they not care, 

after all,  Lease & Fleet cars will be back at Dealerships & off to Auctions 1 year before a MOT is due.

Going to be interesting to see what happens with mots and gutted dpf's apparently they check for there presence via obd in germany

Did the budget include any references to the MOT?

Yes. 

New cars first MOT after 4 years.

I did think there would be a shake up of VED although I did expect re rating of bands instead. The MOT change will suit those on a two year service interval, like me, as we will no longer need a visit at year three just for a test. 

My prediction....

The first year bandings as used for the new system will end up being rolled out for years 2 onwards before we get to the £140 flat rate period.

What I can't understand is the £310 extra charge for cars over £40k. Why have a specific charge for this? I wonder if manufacturers will change what the list prices are?

 

Or is it trying to get us all to buy cheap cars?

 

I think I understand the rates, I assume that its £140 plus whatever the rate is decided by the emissions for the first year, and then £140 a year after that?

What I can't understand is the £310 extra charge for cars over £40k. Why have a specific charge for this? I wonder if manufacturers will change what the list prices are?

 

 

 

I suspect it's a way of getting more from the better off, if you can afford a 40k car you can afford to pay a bit more tax ? 

Edited 8 July, 201510 yr by Laurie61