Huge tax increase for new motorhomes!

[pagey]

very possible

[mgnbuk]

"However from Today 1st September for 5 years road tax will be artificially high on new vehicles purchased"

 

Only on Euro 6d vehicles, and my understanding is that no Euro 6d motorhomes will be able to be registered until they have had the emissons certified to be entered on the CoC.

 

The dealer who initially told me about the changes to taxation with the requirement to have an emissions figure on the CoC for Euro 6d vehicles (i.e all new vans produced from 1st September) said at the time that there were only 2 test facilities that could do the emissions certification and that they would not start testing until September. A shortage of Euro 6d chassis prior to September meant that vans had not been built to be certified earlier to ensure that the required figures were available when the new requirement came in. He said that he didn't expect to be in a position to be able to register a Euro 6d van before December at the point we were talking in June / July.

 

Any existing stock Euro 6b vehicles will be able to be registered under the old arrangement until the end of August next year - anything unsold at that point would have to be pre-registered.

 

Nigel B

[Rayjsj]

I wont be touching a Euro 6 D engined motorhome with a very long bargepole.

 

[John52]

Rayjsj - 2019-09-01 10:27 AM

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.

 

Exactly

Less new motorhomes = less supply of second hand ones.

Coupled with more demand for second hand ones.

Less supply + More demand can only lead to increased price of second hand ones.

So you won't escape the price increase by buying second hand.

[John52]

goldi - 2019-08-31 8:32 PM

 

The disruption to vehicle taxation by the previous chancellor George Osborne who now has been nominated to head the IMF .

Everything Osborne did helps the very wealthy and influential.

So called 'Help to Buy' driving up house prices.

Driving up motorhome prices helps landlords too.

Cutting income tax for the wealthy and replacing it with stealth taxes on everyone.

So it doesn't surprise me they keep nominating him for plum jobs

[John52]

Will86 - 2019-09-01 10:53 AM

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

 

Because you can't take your money with you when you die

[longtemps]

The government has it seems, largely destroyed the U.K. car industry by the diesel emissions scandal and complete ineptitude on the “B” word.

They are now intent on destroying the U.K. based motorhome industry.

The only benefit I can see in this is, if less new vans are sold on these isles, then there will be less competition from fellow Brits when competing for the best locations on the most popular French aires!

[number9]

Was thinking of upgrading to a newer van in 4 years time but now I think I'll just keep old 'Wanda' for a few years more. This tax will put the conversion industry in recession.

[Keithl]

I noticed on the Auto-Trail stand at the NEC that they are offering:

 

"All 2020 orders at the NEC show will pay no more VED than 2019"

[Derek Uzzell]

This ukmotorhomes entry

 

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

 

includes a link to a Governmental briefing paper

 

https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8639

 

that includes a further link to the full 6 September 2019 paper that can be downloaded.

 

There is (at least) one error - the statement that

 

Currently, most newly registered motorhomes pay Light goods vehicles (TC39) Vehicle Excise Duty (VED) rates of £260/year.

 

is inaccurate and should read

 

Currently, most newly registered motorhomes pay Private/light goods vehicle (TC 11) Vehicle Excise Duty (VED) rates of £265/year.

 

but it seems (reasonably) clear that the paper relates only to motorhomes that are ‘light’ (ie. have a gross weight not exceeding 3500kg).

 

It may be that any Auto-Trail motorhome ordered now won’t have a CO2-figure on its final-stage Certificate of Conformity when its build has been completed, but that won’t necessarily be the case for non-UK motorhome constructors whose main marketplace is in Continental Europe where the CO2-figure issue does not have the same relevance as here.

 

(An explanation from Auto-Trail would be useful...)

[Billggski]

"All 2020 orders at the NEC show will pay no more VED than 2019"

 

Doesn't mean much as it doesn't state whether that's after the 1st September or before. Over 3500kg models aren't affected anyway.

[Deneb]

Billggski - 2019-10-18 10:46 AM

 

"All 2020 orders at the NEC show will pay no more VED than 2019"

 

Doesn't mean much as it doesn't state whether that's after the 1st September or before. Over 3500kg models aren't affected anyway.

 

The NCC and DVLA have both intimated that M1SP vehicles of any MPW if subject to WLTP will be placed in a relevant emissions related tax band instead of either PLG or PHGV.

 

My impression on reading the post about the Autotrail statement is that Autotrail are stating that they will subsidise the first year tax cost on new vans, not that they are claiming them to be exempt from the legislation.

 

If that is the case of course, it it simple marketing smoke and mirrors, as whilst the tax cost to the customer may remain at 2019 levels, the total purchase price, negotiated discounts, trade in allowances etc. will all be taken into consideration by both Autotrail and their dealers in calculating the end price that they are prepared to sell their vehicles for.

 

As always, it is the cost to change or how much cash comes out of the customer's pocket that is relevant.

[Will86]

As someone who was born in the 1930's I see the future being inevitable regarding increased costs in all fields. This country and the world in general will be overridden by people.

 

Users of Motorcaravans have a simple choice, buy and accept its freedom or spend your money elsewhere, it cannot change.

 

[Derek Uzzell]

Deneb - 2019-10-18 11:29 AM

 

...The NCC and DVLA have both intimated that M1SP vehicles of any MPW if subject to WLTP will be placed in a relevant emissions related tax band instead of either PLG or PHGV...

 

 

Personally I’ve no problem if this happens, as it has always struck me as strange that a buyer of a new small, light ‘single stage build’ camper like VW’s “Caifornia” model should (when the vehicle is first UK-registered) pay hefty VED and price-related charges because there’s a CO2 figure on the camper’s Certificate of Conformity (COC), whereas ‘multi-stage build and no CO2 figure’ motorhomes with a gross weight not exceeding 3500kg will attract less VED (at least to begin with) and ‘multi-stage build and no CO2 figure' motorhomes with a gross weight exceeding 3500kg will be even more of a bargain VED-wise, with ‘multi-stage build and no CO2 figure' motorhomes also not being ‘penalised’ based on their price.

 

What I’ve also found strange is that the imposition on motorhomes at the UK-registration stage of VED and price-related charges based on CO2 emissions seems to be widey believed to be a new proposal. (There are three letters on Page 13 of the November 2019 issue of MMM magazine about this.) In fact, the ‘new proposal' has been in force since 1 April 2017 and there is a flow-chart on the following link.

 

https://insidedvla.blog.gov.uk/2017/03/27/new-vehicle-tax-rates-how-motorhomes-kit-built-and-multi-stage-build-vehicles-are-affected/

 

Interestingly, there’s a conflict between the statement

 

If no type approval or CO2 emissions figure is recorded on the type approval certificate the vehicle will be taxed in the PLG tax class.

 

and the flow-chart’s indication that - if the vehicle has a CO2 figure on the final stage type approval (ie. COC or IVA) - it will be taxed/charged based on that CO2 figure (and the vehicle’s price) irrespective of whether the vehicle’s gross weight does or does not exceed 3500kg.

 

(I came back from France yesterday and, while over there, I contemplated popping into a friendly Rapido dealership near Caen to ask if they could check whether Rapido COCs for the 2020 model-year range had a CO2 figure on them or not. In the end I decided not to bother as I knew they’d be busy and it’s up the DVLA, the NCC, the UK motorhome trade and the UK motorhome press to clarify the position.)

[Derek Uzzell]

A follow-up...

 

I happen to have an old hard-copy of the DVLA’s Form V355/1 (Notes About Taxation Classes). This document carries a December 2005 (12/05) issue date and includes a description of the three taxation classes (Petrol Car, Diesel Car and Alternative Fuel Car) to which Graduated Vehicle Excise Duty (GVED) based on a vehicle’s CO2 emissions apply. The description indicates that those three Classes relate specifically to a “Passenger vehicle in the M1* category weighing not more than 3500kg revenue weight.”

 

HOWEVER, I notice that there is now a much more recent Form V355/1 (Notes about tax classes) accessible on-line

 

https://tinyurl.com/y63quyel

 

This document has a October 2019 (10/19) issue date and the description of the GVED taxation classes no longer includes any mention that these three classes have a 3500kg vehicle-weight threshold.

 

So (as Deneb has said above) it appears that the DVLA - by redefining the GVED taxation classes so that they have no 3500kg weight limitation - does intend that any motorhome (whatever its gross weight) that has a CO2 figure on its final-stage Certificate of Conformity will in future be assigned to a GVED taxation class.

[Deneb]

PLG and PHGV have never by definition applied to any vehicle first registered after March 2001 either Derek. It didn't stop DVLA using them for motorhomes and multi stage vehicles registered since that date as a policy decision, so irrespective of the actual definitions of Diesel Car and Petrol Car or any other tax classes, if DVLA and by extension HMG approve a policy decision to allocate them to other vehicles, it matters not what the wording of the definition says. Motorhomes with a MPW exceeding 3500kgs are not in any legal definition heavy goods vehicles, yet they were allocated the Private HGV tax class.

[Derek Uzzell]

I fully accept what you have said.

 

As I explained in this 2016 forum thread

 

https://forums.outandaboutlive.co.uk/forums/Motorhomes/Motorhome-Matters/Motorhome-licensing-road-tax/40754/

 

when I contacted the DVLA about the 3500kg threshold, the Form V355/1 that was ‘in force’ and accessible on-line at that time still defined the GVED classes as applying only to vehicles with a GVW not exceeding 3500kg.

 

The DVLA’s (eventual) response to my enquiry confirmed that the definitions on V355/1 should be taken into account by the DVLA if a motorhome with a GVW exceeding 3500kg and a CO2 figure on its final-stage COC were presented for UK registration and the vehicle should be assigned to the PrivateHGV tax class.

 

I’ve no idea if this ever happened subsequently, but deleting the 3500kg references from the latest version of V355/1 means that scenario should no longer apply.