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New goverment car tax rules from April 2017. Your thoughts?

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  • Herzlos
    Herzlos Posts: 15,889 Forumite
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    edited 16 November 2016 at 1:59PM
    I'm pretty sure it also covers optional extras.

    It might open the way for dealerships to retrofit a lot of stuff though; buy a base car, and then once it turns up, pay for uprated components that just swap over.

    Or manufacturers offering massive discounts in exchange for higher interest on the PCP payments.

    Like you, I've very curious what'll happen with cars around the margin.
    Johno100 wrote: »
    Yes, add it on to the cost of fuel, that then supports the principle that the polluter pays.

    It's the fairest system, and it even increases your tax burden if you're speeding,don't maintain your car, drive when it's busy or drive in city centers (via increased fuel consumption). It's also impossible to dodge unless you're already using red diesel.

    I asked my MP about it and he said it was unfair on haulage/fleet operators to add it to fuel. He's a muppet though and has been replaced, so it might ask my new MP who at least seems to be human.

    A tax that bears no resemblance to the size of the vehicle, or how/where/much it's driven seems nuts.
  • Fat_Walt
    Fat_Walt Posts: 750 Forumite
    Nothing to add then darkmatter?

    Go on, tell us about your mighty M car or your Yaris without rear brakes.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
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    It appeals to the disaffected labour supporters, eg get the richer/more successful to pay more.
  • motorguy
    motorguy Posts: 22,611 Forumite
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    dannyrst wrote: »
    Will be interested to see how they deal with optional extras on the £35-39,000 range. Possibly, if PXing, drop the price of the car and offer less PX so it sits under £40k? Would that even work?



    It will be based on RRP.


    Will be interesting to see how BMW, etc deal with that. You can probably get £10K off a £50K BMW, which will work out a lot more expensive for the purchaser than getting £0 off a car at £39995 RRP
  • Mobeer
    Mobeer Posts: 1,851 Forumite
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    dannyrst wrote: »
    Will be interested to see how they deal with optional extras on the £35-39,000 range. Possibly, if PXing, drop the price of the car and offer less PX so it sits under £40k? Would that even work?

    Tax will be based on list price before on-the-road charges.
  • motorguy
    motorguy Posts: 22,611 Forumite
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    Herzlos wrote: »
    A tax that bears no resemblance to the size of the vehicle, or how/where/much it's driven seems nuts.



    When it was (roughly) based on engine size / pollutants people (rightly) gravitated towards lower or £0 tax vehicles. This cost the government a fortune in lost revenue.


    Hence they've introduced this new system to get the revenue back.
  • Nick_C
    Nick_C Posts: 7,602 Forumite
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    neilmcl wrote: »
    I would imagine it'll apply to the basic RRP of the vehicle before options etc.

    "Cars with a list price in excess of £40,000 will incur a supplement of £310 ... SR for the first 5 years"

    https://www.gov.uk/government/publications/vehicle-excise-duty

    The government website explains the measure in clear simple English.
  • motorguy
    motorguy Posts: 22,611 Forumite
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    edited 16 November 2016 at 2:09PM
    Fat_Walt wrote: »
    Nothing to add then darkmatter?

    Go on, tell us about your mighty M car or your Yaris without rear brakes.



    Given "his" 370Z Nismo is currently being taxed at over £500 a year, and the new system would have a brand new Nismo fall beneath the £40K threshold and thus be taxed at £140 a year, I'm surprised hes not in favour of the new regime?


    - assuming of course, he would consider another Nismo, instead of say, a "mighty" M3....
  • Fat_Walt
    Fat_Walt Posts: 750 Forumite
    motorguy wrote: »
    Given "his" 370Z Nismo is currently being taxed at over £500 a year, and the new system would have a brand new Nismo fall beneath the £40K threshold, I'm surprised hes not in favour of the new regime?


    He'll have it sorn'd in the imaginary garage after the imaginary crash.
  • Car_54
    Car_54 Posts: 8,843 Forumite
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    dannyrst wrote: »
    Tax should be done on miles driven not emissions or value of the car.

    As it stands, It's just another pointless tax only used to generate more revenue like stamp duty.

    How is it pointless? It generates revenue - that's the whole point of any tax.
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