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Cars in £20 a year tax band which is fixed, how come?

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My Skoda 2017 Fabia 1.0 999cc DSG is £180 a year to tax, how come a 15 plate VW polo 1.2 with higher emissions only pays £20 a year and it never increases?

My previous 2008 Citroen C1 had EU4 109g/km emissions and cost £20 per year, its replacement was a 2020 Toyota Aygo (badge engineered version of the same car) had EU6.2 99g/km emissions but cost £150 per year.

 

Oh and my previous 2015 1.4TSI Octavia had 129g/km emissions but only cost £30 per year, so for a period I had a car with lower emissions having Road Tax that was 5 times as much!!!

 

The difference? - Road Tax changes by politicians in the years between 2008 and 2020.

Edited by PetrolDave

All cars since 1/04/2017

1446124266_Screenshot2023-11-21at11-46-39V149-v149-rates-of-vehicle-tax-for-cars-motorcycles-light-goods-vehicles-and-private-light-goods-vehicles_pdf.png.afffc94c48bfd347beba59207fcbb3d7.png

 

Some people getting nasty shocks when they find out why the dealer included the first year ved in the sale price of a second hand car

 

The optimum age was the 2001- April 2017 rates when people where encouraged to buy low co2 cars.

 

50709913_Screenshot2023-11-21at11-51-53V149-v149-rates-of-vehicle-tax-for-cars-motorcycles-light-goods-vehicles-and-private-light-goods-vehicles_pdf.png.cdb10708b692f8a6dc252837c6ebdcb9.png

 

Now they are set to encourage those buying cars that were over £40k to switch to electric and save over £3,000 in Ved over 6 years

 

 

15 hours ago, wilson-uk-85 said:

My Skoda 2017 Fabia 1.0 999cc DSG is £180 a year to tax, how come a 15 plate VW polo 1.2 with higher emissions only pays £20 a year and it never increases?

 

Timing, tick a tick a tick a timing.

 

Started to save up for the £20 a year to be introduced from my Zoe in 2025.  If I save  20p a week should have enough in 2 years time.

 

Arkana is £170 as I think I get £10 a year off as a hybrid.  My Jag Type S was over £500 a year even though it could do over 40 mpg with it quite efficient 2.5l V6 mondeo engine.

 

There is little logic to it.  

The £0 & £20 VED at the time really was and is a joke considering the cheating that was done with the testing pre-WLTP. 

Defeat Devices and testing on Rolling Roads on Base Models without options like spare wheels in the cars tested, not that that really mattered.

 

Before that the Scrappage Scheme that had some people buying a new Diesel City car was a P1ss take.

Many of those cars bought then were scrapped years ago. 

 

Now it is PHEV,s that are kidology which the WLTP helps with.  If they did do 200 mpg + for each gallon used with just one charge up of the small battery before a journey how amazing would that be.

Edited by Rooted

8 minutes ago, lol-lol said:

 

Timing, tick a tick a tick a timing.

 

Started to save up for the £20 a year to be introduced from my Zoe in 2025.  If I save  20p a week should have enough in 2 years time.

 

Arkana is £170 as I think I get £10 a year off as a hybrid.  My Jag Type S was over £500 a year even though it could do over 40 mpg with it quite efficient 2.5l V6 mondeo engine.

 

There is little logic to it.  

 

 

My understanding was that post 2017 EV's will have to pay band B rates from 2025 which at the moment is £170,

 

https://heycar.com/uk/blog/electric-car-road-tax-rates-and-ved-bands

 

 

 

 

 

 

 

 

?

Is this Retrospective applying of a VED on vehicles registered from as much as 9 years old unique? 

 

I seem to remember at Budgets & Pre-Budget announcements hat it was said in the past that this sort of thing would not happen.

I was aware of it when it was first announced.

4 hours ago, Rooted said:

?

Is this Retrospective applying of a VED on vehicles registered from as much as 9 years old unique? 

 

I seem to remember at Budgets & Pre-Budget announcements hat it was said in the past that this sort of thing would not happen.

I was aware of it when it was first announced.

 

I think it was announced in the statement for the changes in 2017 so that would mean it is not a retrospective application?

12 Months ago 'Jeremy Hunt MP / Chancellor.'

Screenshot 2023-11-21 18.03.47.jpg

16 minutes ago, Rooted said:

12 Months ago 'Jeremy Hunt MP / Chancellor.'

Screenshot 2023-11-21 18.03.47.jpg

 

Thanks for that.

 

The actual statement in 2022 said "Removal of exemption"

 

https://www.gov.uk/government/news/autumn-finance-bill-2022-published

 

 

So the rest of the newspaper story is theoretical based on the current rates.

 

Also saying it is the first retrospective change would be incorrect because when i first started driving a Private hire vehicle in the 1980s Cars "registered as "Private hire/hackney" were exempt and the exemption was removed later.

4 hours ago, Rooted said:

The £0 & £20 VED at the time really was and is a joke considering the cheating that was done with the testing pre-WLTP.

 

 It most certainly wasn't a joke, in fact it was  one of the few cases where government did what it was supposed to do and was very successful at achieving it's goals.

 

Back in the day the issue was greenhouse gases dissolving the ozone, the main cause being identified as Co2. So there all sorts of schemes around the world to to reduce Co2. In the UK, the then chancellor decided to incentify the purchase of low C02 producing cars.  That's it in a nutshell. it had nothing to do with diesel, nothing to do with cheating devices, which by the way was discovered by the Americans testing for NoX. In a relatively short time, the government managed to get us in to lower producing Co2 cars which played a part in Co2 output being reduced.

 

The change in 2017 came about not because of cheating devices or harmful gases, it came because there were far too many cars falling within the set criteria hence Gov were loosing money hand over foot. Just like they're having to change again in 2025 given the increasing number of EV's.

 

VED is all about generating money.

 

What will happen in 2025?  Who knows. The OP is right to question that pre 2017 £20 lowest VED band because unless it's since been updated, the government sown paper says the changes will affect existing EV owners.    Gov paper - 2025 VED to be applied to EV

 

The elephant in the room is the 'luxury tax' or the "expensive car tax" as they now seem to be calling it, as that adds, at current rates, an additional £390 for cars with a list price in excess of £40000. ( i.e. the vast majority of EV's )

 

So the question is what will happen to current EV owners who currently pay nothing?  As the majority of EV's cost over £40k

 

2024 VED rate = £0

2025 VED rate = £185 + £390 = £575 ?

 

Personally I think that ridiculous and if true, could put a further nail in the coffin of EV ownership. Was it Osborne who did away with the £20 / £30 fee? At least he kept it for those who purchased their vehicles based on that lower rate, but for the current Chancellor wanting current owners to go from £0 to £575 VED  a year thru no fault of their own !   I think it's a disgrace. I think it's ill thought out and I think it could seriously affect the uptake of EV. It's certainly going to cause issues in the used market.  Aren't these  lunatics supposed to be encouraging us to move to EV?  It's almost inevitible that £40,000 limit will be raised for a start. Vauxhall announed it's Astra Estate today - add metallic paint and every Astra estate will cost £575 a year to tax!  That's just nuts.

 

Remember I said above that C02 output had been reduced. Since they stopped that £20/£30 low VED rate, C02 output has continued to rise. But just like the war in Ukraine, we've forgotton all about the ozone,

They really really are low emission cars.  Not.

Screenshot 2023-11-21 18.54.46.png

Screenshot 2023-11-21 18.56.22.png

13 hours ago, kodiaqsportline said:

Back in the day the issue was greenhouse gases dissolving the ozone, the main cause being identified as Co2. So there all sorts of schemes around the world to to reduce Co2.

I wonder what the models are saying about Co2 now?

14 hours ago, kodiaqsportline said:

it was  one of the few cases where government did what it was supposed to do and was very successful at achieving it's goals.

So successful that the VED revenue dropped so much (as manufacturers found ways to get meaningless in the real world low CO2 test results and purchasers followed) they had to reverse it!

18 minutes ago, PetrolDave said:

So successful that the VED revenue dropped so much (as manufacturers found ways to get meaningless in the real world low CO2 test results and purchasers followed) they had to reverse it!

All stick, no carrot.

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