Huge tax increase for new motorhomes!

[charleydog]

the dealer that is supplying our new camper phoned me yesterday and suggested that he registers it prior to 1st September to avoid this extra cost. It means of course that I will get an older plate number (19) and not 69. this does not bother me in the least as i place no importance to such things.In the same way as i never understood the need for personal no. plates. Who cares if your wife's name is Sue :-D

[Derek Uzzell]

charleydog

 

If your dealler is in a position to register your new camper prior to 1 September 2019 (presumably) he will need to have in his possession all the necessary documentation relating to the camper that will be required by the DVLA to permit the vehicle to be registered.

 

Assuming that the camper is Type Approved, one of the required documents will be the camper’s Type Approval ‘final stage’ Certificate of Conformity (CofC) and that document will either have a CO2 emissions value on it or it will carry no CO2 emissions value.

 

If that CofC document carries no CO2 emissions value, then the camper cannot be registered in an ‘emissions’ VED tax class and - if its gross weight does nor exceed 3500kg - it will be registered in the Private/Light Goods class. If the vehicle’s gross weight exceeds 3500kg, the camper will be registered in the PrivateHGV VED tax class even if the CofC carries a CO2 value.

 

If you are keen to have a “69” registration number, I suggest you check with your dealer about this. If the dealer can be 100% certain that there’s no CO2 value on the camper’s ‘final stage’ CofC, there’s no pressing need to register it before 1 September. (Conversely, if the CoC does have a CO2 value on it, the 1 September date won’t matter as the CO2 value will be used by the DVLA whenever the camper is registered.)

 

If the final-stage CofC of all new motorhomes does suddenly begin to carry a CO2 value (from 1 September or subsequently) as things stand the DVLA would register those (up-to-3500kg MAM) vehicles in the UK VED ‘emissions’ tax classes and this would be much more costly for the buyer than currently. So I’ve some sympathy with your dealer’s precautionary suggestion as, when it seemed that there was a fair chance Brexit would occur on 29 March 2019, I purchased an IDP and stuck a GB sticker on my motorhome in advance. I also obtained insurance Green Cards and, because of when the insurance policies expired, it was necessary to renew the policies early. Brexit, of course, has still not happened and there was no need for me to do any of those things. But better safe than sorry and, if you want to ensure that you avoid any ‘tax increase’ your dealer’s suggestion has merit.

[Derek Uzzell]

I notice that this petition

 

https://petition.parliament.uk/petitions/268246?fbclid=IwAR19WbeePBb-WJx7dGo23j3ul4Su1uQDNlExvrrX0X9uT_37e2SB18T9ng0

 

is now approaching the 10,000 signature threshold.

 

The petition is drivel, but I’ve added a couple of signatures to it to push it towards the 10K mark when a governmental response should be provided. I’m doubtful that a response would be particularly informative or earth-shaking, but one never knows...

[Derek Uzzell]

For anyone interested, how VED has been applied to motorhomes historically is usefully summarised here:

 

https://www.ukmotorhomes.net/motorhome-faqs/motorhome-road-tax

[Rayjsj]

The extra Tax cost will perversely penalise cleaner engined new motorhomes, discourage the upgrading to newer vehicles and harm the Motorhome industry, which, up til now has been doing quite nicely. So, a bit of a stupid ' shoot self in foot' action. All in a week which sees Brazil allowing Trashing of the pristine rain forest for logging of hardwood and cattle farming........the lunatics really are running the Asylum.

I will run my present vehicles for as long as i legally can. BUT will buy nothing new. and certainly nothing electric powered. How is this helping ??

Dont we already pay 20% VAT on all new purchases....wont this mean we will pay tax upon tax ? its mainly VAT that pushes motorhomes above £40000.

[phalange]

If the government keeps pushing income tax cuts ( which ever party is in power) then money has to be gained somehow, so backdoor taxes are the only way,, alcohol, fuel, vat etc . You can’t have your cake and eat it. I was in the market for a new pvc but not now.

[John52]

brom - 2019-08-18 1:09 PM

All new motorhomes registered after 1st September 2019 ( i.e. in 2 weeks' time), powered by engines meeting Euro 6d/6.2 emission standards, will apparently fall into a higher VED band. Earlier Euro 6b engines (theoretically dirtier), aren't affected. Very logical!

 

Actually Yes, it is logical from a political point of view.

Existing owners are more likely to notice a tax hike than those buying a new vehiicle where its part of the purchase price.

[brom]

The new tax increase, when viewed as a proportion of the cost of buying a new motorhome/campervan, may not be huge, but when people are wondering if they can justify the expense of a new motorhome, it is a factor very likely to tip the balance against, particularly in these uncertain times.

 

So the responses that some have posted that they were thinking of buying a van, but won't now, is exactly why my original post said:

 

'Perhaps we should be lobbying our MPs, particularly those whose constituencies are home to motorhome converters. The Treasury says it does 'recognise the concerns of the sector, and will keep all taxes under review', so presumably will alter the classification once it's clear the native industry has been flattened, so as to allow foreign converters to fill the gap!'

 

We've already just seen Lunar go into administration. Those companies which have the benefit of cover from large continental leisure empires will presumably be fine - it's the smaller, independent firms, whose products are often the best made and most thoughtfully designed, about whom I worry.

 

That's why I shall be writing to my MP (I know, fat lot of difference that will make, but you have to try!), and why I think it's worth our while making a fuss.

 

Tax changes hammered the industry back in the early 70s, I think (before my camping time), and it took years to claw its way back.

 

[Derek Uzzell]

You might want to read through this 12-year-old forum discussion titled “An extra £120 Road Tax on Motorcaravans”.

 

https://forums.outandaboutlive.co.uk/forums/Motorhomes/Motorhome-Matters/An-extra-120-Road-Tax-on-Motorcaravans/8436/

 

Graduated Vehicle Excise Duty (GVED) based on a vehicle’s CO2 emissions was introduced in 2001, and in 2013 the DVLA decided to apply GVED to motor caravans that had a stated CO2 emissions value. This decision was widely publicised in a joint DVLA/NCC press release copied below

 

.................................................................................................................

 

New Licensing Arrangements for motorhomes/motorcaravans

 

From 1st August 2013 a change was introduced for the licensing of all vehicles type approved within the M1SP category and this includes motorhomes/motorcaravans.

 

It is important to note that when licensing newly registered vehicles in this category for the first time, DVLA representatives should only be considering the Certificate of Conformity (CoC) for the final stage vehicle. Although, all other CoCs (ie first stage, second stage CoCs) relating to the vehicle must also be provided to the DVLA.

 

Where original first or second stage base vehicles are converted by manufacturers to a motorhome, the conversion process will affect the original emissions figure stated by the first stage base vehicle manufacturer.

 

Therefore, most motorhome/motorcaravan manufacturers/converters do not quote a CO2 emissions figure on the final stage CoC. Accordingly, the CO2 emissions field on the final stage CoC will normally be left blank when registering the vehicle via Automatic First Registration & Licensing AFRL or with a V55/4 form.

 

Where no CO2 emissions are present on the final stage CoC for the finished vehicle it must be licensed in the Private Light Goods or Private Heavy Goods Vehicle taxation class, depending on weight.

 

If however the motorhome/motorcaravan manufacturer/converter has stated a CO2 emissions figure on the final stage CoC for the finished vehicle then the motorhome/motorcaravan should be licensed in a vehicle taxation class based on its CO2 emissions. Where the CO2 figure is provided on the final stage CoC this will be captured and recorded on the vehicle record.

 

If you are unsure as to which CoC covers the final stage approval for the finished vehicle it is the one which has the same type approval number as that stated on the V55/4 Registration form.

 

.................................................................................................................

 

Now (six years on) it has been decided - and that decision was not taken unilaterally by the UK government nor by the DVLA - that the final stage CoC of ALL Type Approved vehicles must carry a CO2 value. Consequently, the DVLA’s 2013 policy-change will henceforth affect any new motor caravan with an overall weight not exceeding 3500kg and the VED charge can be expected to increase significantly.

 

When I discussed motor caravan VED with the late Mel Eastburn in 2007, I said that very few motorhomes were built for just two people and that motorhomes’ sleeping accommodation often included small supplementary beds more suitable for children than adults. It might be assumed from this that motorhomes were oriented towards ‘families’ and, in fact, motohome advertising regularly carried pictures depicting ‘family’ usage as a selling point. As I expected parents/grandparents to be very concerned about the health of their children/grandchildren (and the future of the Planet) I’d also expect those people to be concerned about vehicle CO2 emissions and to support the UK’s GVED ‘green’ scheme that matched a high taxation charge with a high CO2 emissions value. And, if that charge hit motorhomes hard, I’d expect buyers to put children first and to grin and bear the cost.

 

Obviously UK potential buyers of new motorhomes are not going to take kindly to a significant increase in VED in the near future, but that increase has been on the cards since 2013 and I’m not aware that anybody (clubs, dealers, converters, buyers, etc.) has done anything since then to alter the DVLA’s 2013 policy or to seek to have motor caravans treated as a special case within the UK’s VED scheme.

 

Good luck with your letter to your MP, but suggesting that applying GVED to mothomes is likely to destroy UK motorhome converters seems very shaky logic to me.

 

(I notice that Lunar has found a buyer.)

 

https://www.outandaboutlive.co.uk/motorhomes/news/lunar-automotive-buys-lunar-caravans

[Deneb]

It's worth noting as I indicated previously, that the French response to vehicle emissions has been to introduce a graduated penalty which is added to the price of the vehicle on its initial purchase. For the most polluting vehicles which will include some motorhomes, the additional charge is 10,500 euros.

[charleydog]

Blimey! Derick my head started to hurt till i read your bottom line. so will leave it as is, thanks. though for the detailed reply

[Derek Uzzell]

Deneb - 2019-08-24 11:50 AM

 

It's worth noting as I indicated previously, that the French response to vehicle emissions has been to introduce a graduated penalty which is added to the price of the vehicle on its initial purchase. For the most polluting vehicles which will include some motorhomes, the additional charge is 10,500 euros.

 

Apparently the French ‘malus’ (penalty) scheme has been operative since 2017.

 

The following is a (mainly) GOOGLE-translated 1 August 2019 French article about the scheme

 

Automobile malus: a windfall for the state which must be revised in 2020

 

The car penalty scheme should still pay very well this year. Good news for public finances, less for the environment. With new certification standards expected for next year, a review of the scheme is very likely.

 

The malus should provide 550 million euros for the state this year, says an article in “Echoes”.

 

This tax applies to purchases of new vehicles, imposing an additional cost based on CO2 emissions. Made stricter from year to year, for 2019 the tax applies to vehicles emitting at least 117 g /km of CO2, with the addition to the purchase price ranging from 35 euros (117 g /km of CO2) to a maximum of 10,500 euros for vehicles emitting more than 185 g /km of CO2.

 

Second year that the tax has netted more than 500 million euros.

 

After 2018 when the tax produced 559 million euros for the state, revenue from the malus remains at a high level this year, despite several months when sales of new cars were down. In 2016, the tax returned 265 million euros and, in 2017, 352 million euros.

 

Good news for public finances, less for the environment. Despite the additional cost imposed, the French are still buying cars emitting high levels of CO2, a consequence of the current fashion for SUVs and the decline in sales of diesel, the latter emitting less carbon dioxide compared to a petrol engine of equivalent power. Result: in 2018, nearly 30% of new vehicles were affected by a penalty, compared to 18% in 2017.

 

The aim of the malus is also to finance other incentives to buy cleaner cars: the ecological bonus but also the ‘replacement bonus’, the cost of which has exceeded the government's forecasts. It is for this reason that the conditions of access to this new scrappage-scheme have just been tightened .

 

In 2020, a new standard.

 

The CO2 data that make it possible to fix the level of the malus are provided by the vehicle manufacturers following the European homologation of their various models, but in 2020 new standards will apply. Following the ‘Dieselgate’ scandel, the WLTP protocol will be closer to real-world emissions of vehicles and, compared to the current standard, this is likely to result in a 25% increase in the stated CO2 emissions values.

 

The revised standard means that a simple application of the malus scheme’s current CO2 scale would penalise almost all new vehicles sold in France. Addressing this conundrum promises to be complex: the government will need to come up with a solution that will not penalise the automobile market too much while still maintaining the governmental objective to reduce CO2 emissions.

 

[highlandspring]

Shame there are no zero emission campervans on the market, guess we have a long wait for the battery power and mileage range to become affordable.

[Derek Uzzell]

A follow-up on the French “malus” scheme...

 

I asked myself why French camping-caristes seem to be generally unconcerned about the scheme, and the answer seems to be that ‘motor caravans’ are exempt.

 

A variant of the malus scheme was evidently introduced in 2008. Vehicles that meet technical criteria that allow them to be homologated as a VASP (Véhicule Automoteur Spécialisé) and with an overall weight not exceeding 3500kg are exempt and the technical criteria allow the majority of ‘camping-cars' marketed in France to qualify for exemption.

 

The technical criteria roughly equate to the UK DVLA’s description of what defines a “motor caravan” - the vehicle has to have a kitchen area, seating, bed, table, etc. - and coachbuilt motorhomes and larger panel-van conversions have those features as standard.

 

The leisure-vehicles that get hit by the malus in France are small ‘day vans' like the VW California and Westfalia Marco Polo that lack one or more of the mandatory features that would allow the vehicle to be officially accepted as a VASP.

 

[Rayjsj]

highlandspring - 2019-08-25 9:23 AM

 

Shame there are no zero emission campervans on the market, guess we have a long wait for the battery power and mileage range to become affordable.

Many years in the future I'm afraid, 500 mile range is a minimum req'd for white van man and hence the same for motorhome bases and PVCs.

Most folk seem to be saying that they will be hanging on to their present euro 4 and euro 5 vans, rather than paying punitive taxes to the government , which is bad news for producers. Especially as most motorhomes only do small annual mileages, so do minimal harm to the environment.

[Derek Uzzell]

Rayjsj - 2019-08-25 11:14 AM

 

...paying punitive taxes to the government...

 

It’s possible to check on-line the CO2 emissions value relating to new cars. Doing so will show that a combination of a high CO2 value and a high purchase price is quite common, and also that the vehicles involved are luxury and/or high-performance type that a buyer will have little justification for purchasing except that a) they have the necessary funds and b) that they want to own that particular vehicle.

 

As far as I’m concerned new motorhomes are little different. Their purchase will be a ‘lifestyle’ choice rather than a necessity and I really don’t see why anyone choosing to spend (say) £50K on a new motorhome should expect to pay less VED than anyone choosing to spend a similar amount of money on (say) a high-powered petrol-engined Jaguar sports-car.

 

(The "Stop increases in road tax for motorhomes” petition has now clocked up 9874 signatures, so it’s probable that it will pass the 10,000 signatures mark when the government will respond. Perhaps the government will think as I do...)

[goldi]

brom - 2019-08-23 10:33 PM

 

The new tax increase, when viewed as a proportion of the cost of buying a new motorhome/campervan, may not be huge, but when people are wondering if they can justify the expense of a new motorhome, it is a factor very likely to tip the balance against, particularly in these uncertain times.

 

So the responses that some have posted that they were thinking of buying a van, but won't now, is exactly why my original post said:

 

'Perhaps we should be lobbying our MPs, particularly those whose constituencies are home to motorhome converters. The Treasury says it does 'recognise the concerns of the sector, and will keep all taxes under review', so presumably will alter the classification once it's clear the native industry has been flattened, so as to allow foreign converters to fill the gap!'

 

We've already just seen Lunar go into administration. Those companies which have the benefit of cover from large continental leisure empires will presumably be fine - it's the smaller, independent firms, whose products are often the best made and most thoughtfully designed, about whom I worry.

 

That's why I shall be writing to my MP (I know, fat lot of difference that will make, but you have to try!), and why I think it's worth our while making a fuss.

 

Tax changes hammered the industry back in the early 70s, I think (before my camping time), and it took years to claw its way back.

 

Good morning,

 

Yes Brom, the tax changes of the then labour chancellor Dennis Healey lifted the VAT to 24 % from 8% for caravans and boats because he deemed them luxury items. This had the effect of sending boat buyers to Italy and devastating the caravan industry.

 

 

 

 

[Rayjsj]

Derek Uzzell - 2019-08-26 9:00 AM

 

Rayjsj - 2019-08-25 11:14 AM

 

...paying punitive taxes to the government...

 

It’s possible to check on-line the CO2 emissions value relating to new cars. Doing so will show that a combination of a high CO2 value and a high purchase price is quite common, and also that the vehicles involved are luxury and/or high-performance type that a buyer will have little justification for purchasing except that a) they have the necessary funds and b) that they want to own that particular vehicle.

 

As far as I’m concerned new motorhomes are little different. Their purchase will be a ‘lifestyle’ choice rather than a necessity and I really don’t see why anyone choosing to spend (say) £50K on a new motorhome should expect to pay less VED than anyone choosing to spend a similar amount of money on (say) a high-powered petrol-engined Jaguar sports-car.

 

(The "Stop increases in road tax for motorhomes” petition has now clocked up 9874 signatures, so it’s probable that it will pass the 10,000 signatures mark when the government will respond. Perhaps the government will think as I do...)

 

My only answer Derek is Vat on Jet Fuel.

if My choice of holiday is to be considered 'a luxury item' and bad for the environment then surely its time Unlimited air travel was taxed as a 'Luxury' too. ?

[Derek Uzzell]

The point is that this ‘new’ Vehicle Excise Duty ‘increase’ that is being warned about is neither new nor an increase.

 

Ever since 1 August 2013 the DVLA’s stated policy has been to register a new Type-Approved motor caravan in the appropriate Graduated VED class (GVED) if the vehicle’s Maximum Authorised Mass (MAM) does not exceed 3500kg and its final-stage Certificate of Conformity (CoC) carries a CO2 value.

 

The DVLA’s policy was well advertised at the time but, as (apparently) the only ‘motorhome’ that this policy has impacted on regularly has been the small VW “California” camper model, motor caravanners as a breed have happily overlooked the DVLA’s policy until now when dire warnings have suddenly been issued that, from 1 September 2019, ALL new motorhome CoCs must carry a CO2 value and, as a result, all new up-to-3500kg MAM motorhomes will be registered in the GVED classes with a predictable effect on the VED charged.

 

This link is to a Parkers guide to the ‘road tax’ relating to VW “California” models

 

https://www.parkers.co.uk/volkswagen/california/estate-2015/car-tax/

 

and shows how the annual and 1st year charges vary according to the vehicle’s age and list-price. In future (unless the DVLA’s present policy changes) there’ll be a similar scenario for all new 3500kg-or-lower MAM motorhomes.

 

As the DVLA’s current policy exempts from GVED motor caravans with a MAM exceeding 3500kg, if one has the necessary driving-licence entitlement, purchasing a new motorhome with a 3501kg-or-higher MAM would be a way of side-stepping the issue.

 

My Rapido 640F could have been ordered with a MAM of 3650kg or 3500kg. It would be interesting to know what the DVLA would do if a new motorhome with a MAM of (say) 3650kg were registered (when it would be assigned to the PrivateHGV tax class) and then immediately have its MAM ‘downplated' to 3500kg. No ’technical’ modifications would be needed to do this as 3650kg and 3500kg models would be identical twins except for their MAM. As the ‘downplated’ motorhome would have already been UK registered in the PHGV tax class, would this be ignored by DVLA when they moved it to (presumably) a GVED tax class or what?

 

 

 

[John52]

Derek Uzzell - 2019-08-26 9:00 AM

I really don’t see why anyone choosing to spend (say) £50K on a new motorhome should expect to pay less VED than anyone choosing to spend a similar amount of money on (say) a high-powered petrol-engined Jaguar sports-car.

They could change from an over-powered car to a sensibly powered car, more easily than a motorhomer could give up motorhoming - especially a full timer.

Then there are those motorhomers only doing 500 miles a year and paying as much tax as the overpowered car driver doing 50,000 >:-)

[Derek Uzzell]

The NCC highlights that a potential buyer of a new motorhome with a Gross Vehicle Weight not exceeding 3500kg will have little option but to pay a substantial amount of VED if all such motorhomes have a CO2 figure on their final-stage Certificate of Conformity. This is because the CO2 figure of these vehicles’ powerplants will probably be large and the motorhome’s price will probably be over £40K.

 

Although this is undoubtedly true, there’s no compulsion for anyone to purchase a motorhome in the first place, nor - if they choose to do so - that it be brand-new. There have never been special VED classes for motor caravans - they’ve either been registered in ‘obsolete’ VED classes or, in rare cases, in the Graduated VED ‘car’ classes where - unless the present arrangement is changed - most will end up in future.

 

Motorcaravanners who currently ‘full time’ won’t be affected unless they decide to buy a brand-new motorhome, and this also applies to people who already own a motorhome. Buyers of new motorhomes will, of course, be affected, but whether the DVLA (or the government) thinks that those buyers should be given special treatment VED-wise remains to be seen. Perhaps the response to the petition will provide an answer...

 

https://petition.parliament.uk/petitions/268246

 

 

[Don636]

Do you think that this could lead to an increase in the number of caravans at the expense of motorhomes?

[goldi]

Don636 - 2019-08-31 8:02 PM

 

Do you think that this could lead to an increase in the number of caravans at the expense of motorhomes?

 

Good evening,

 

Yes I do. The Dutch pay a wealth tax on all their assets, and this is why you see a lot of Dutch tuggers. The disruption to vehicle taxation by the previous chancellor George Osborne who now has been nominated to head the IMF so gawd help us. Taxation does affect the way people think and act.

[Rayjsj]

goldi - 2019-08-31 8:32 PM

 

Don636 - 2019-08-31 8:02 PM

 

Do you think that this could lead to an increase in the number of caravans at the expense of motorhomes?

 

Good evening,

 

Yes I do. The Dutch pay a wealth tax on all their assets, and this is why you see a lot of Dutch tuggers. The disruption to vehicle taxation by the previous chancellor George Osborne who now has been nominated to head the IMF so gawd help us. Taxation does affect the way people think and act.

 

This will also make 2nd Hand (and LESS enenvironmentally friendly)motorhomes MORE popular, for purchasers as the 'Luxury' tax will not apply. However from Today 1st September for 5 years road tax will be artificially high on new vehicles purchased. A death knell for producers of new motorhomes.

 

[Will86]

Then do as I did and stop buying them, when I calculated the costs the decision was made, yes I obviously miss the convenience but refuse to be dictated to.

 

And yes I could afford the new costs but why should I ?