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New 2017 road tax rules

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  • Part of the confusion is using the word 'Tax', to mean the Vehicle Excise Duty - which is a form of tax, and to mean a vehicle licence - which is not a form of tax.
    Even the .gov.uk website - Vehicle tax, Mot and insurance, is littered with the word 'tax', sometimes when it should be excise duty, and other times when it should be vehicle licence.

    Does it matter?
  • Miss165
    Miss165 Posts: 52 Forumite
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    Just to clarify, this is only for newly registered cars?

    Does that mean my 2012 Kia will always be £0 road tax?
  • wongataa
    wongataa Posts: 2,707 Forumite
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    Miss165 wrote: »
    Just to clarify, this is only for newly registered cars?

    Does that mean my 2012 Kia will always be £0 road tax?
    When VED changes the changes are always for vehicles registered on or after the change date. The VED for existing vehicles does not change. So the VED for you current car will stay the same.
  • Rover_Driver
    Rover_Driver Posts: 1,520 Forumite
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    Does it matter?

    It can do, for example when people talk of their car being 'tax free', it may be free of excise duty, but it is still required to be licensed, or referring to a car as 'untaxed', where no excise duty is due, but the vehicle is unlicensed.
  • Car_54
    Car_54 Posts: 8,863 Forumite
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    wongataa wrote: »
    When VED changes the changes are always for vehicles registered on or after the change date. The VED for existing vehicles does not change. So the VED for you current car will stay the same.

    With respect, that is completely wrong.

    The changes under discussion above are only for new cars, but that is exceptional. AFAIK it has never happened before.

    It would be very surprising if the rates for existing cars don't increase either this year or next. Or both.
  • almillar
    almillar Posts: 8,621 Forumite
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    Just to clarify, this is only for newly registered cars?
    Does that mean my 2012 Kia will always be £0 road tax?

    Yes, these changes are only for newly registered cars, so a 2012 car is unaffected.
    Your car is within the ~2007-2017 CO2 output banding - theoretically they can do whatever they like with the bands, there are often £5 or £10 increases on categories, but IMO it would be a bit unfair to increase from 'free'.
  • Car_54
    Car_54 Posts: 8,863 Forumite
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    almillar wrote: »
    Yes, these changes are only for newly registered cars, so a 2012 car is unaffected.
    Your car is within the ~2007-2017 CO2 output banding - theoretically they can do whatever they like with the bands, there are often £5 or £10 increases on categories, but IMO it would be a bit unfair to increase from 'free'.

    That's all right then, the government would never do that.
  • Herzlos
    Herzlos Posts: 15,903 Forumite
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    This could be significant in ~3 years, when 2016 cars will be more desirable than 2017. More people are swayed by £140/year tax bill than you'd credit.
    Miss165 wrote: »
    Just to clarify, this is only for newly registered cars?
    Yes, this change is for 2017 onwards, your 2012 will still be taxed on the 2006-2016 bands.
    Does that mean my 2012 Kia will always be £0 road tax?
    Unless the old bands values change, then it should stay at £0.
  • Nasqueron wrote: »
    It's also still Vehicle Excise Duty not Road Tax which hasn't existed since 1937 when Winston Churchill abolished it. While the new VED is mooted to be used for new strategic road building, whether it will be or not is debatable

    You'd be better advising the DVLA of that fact, they still call it "tax". :)

    https://www.gov.uk/vehicle-tax
  • wongataa
    wongataa Posts: 2,707 Forumite
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    Car_54 wrote: »
    With respect, that is completely wrong.

    The changes under discussion above are only for new cars, but that is exceptional. AFAIK it has never happened before.

    It would be very surprising if the rates for existing cars don't increase either this year or next. Or both.
    Every time the VED rating scheme has been changed that I can remember the new system has only been applied to vehicles registered after the change - new cars. It is not exceptional. All existing vehicles continue to use the rating scheme they are currently on.

    Prices on all rating schemes will vary over time.
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