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Road tax
Comments
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They changed because reductions in CO2 meant that the average new car sold in the country was down to £30/year - a level it hadn't been since the mid 70s, even without accounting for inflation. Clearly, that was far too cheap, and was hitting government revenue hard.robbiejustice wrote: »This does seem a crazy tax setup and they will probably change at some point it but I'll work off what's infront of me and get a pre april 2017 reg car.0 -
They changed because reductions in CO2 meant that the average new car sold in the country was down to £30/year - a level it hadn't been since the mid 70s, even without accounting for inflation. Clearly, that was far too cheap, and was hitting government revenue hard.
I always felt that the government in 2001 made a mistake by applying the CO2 based VED rates in bands. If they'd made me Chancellor instead of Gordon Brown
, I would have set a rate of say £1 per year per g/km accross the board. So a car with CO2 emisions of 100 g/Km would have paid £100, a car with emissions of 400 g/km would pay £400 etc, with no upper or lower limits. Then as official CO2 figures for new cars fall over time you just up the annual charge to say £1.10 per g/km to cover the shortfall in revenue, but still encourage buyers to go for lower CO2 vehicles. They missed a trick there I think. 0 -
They could have upped the prices for the bands, of course, but that would have got ridiculous for 00s stuff, and led to mass scrapping of perfectly viable cars. Hardly environmentally friendly...
The way the bands go up incentivises low CO2 stuff, and penalises high, without being too harsh around the middle.
https://www.gov.uk/vehicle-tax-rate-tables/rates-for-cars-registered-on-or-after-1-march-20010 -
VED is set in the budget, so it could effectively change in any budget.
As we have seen, the criteria for how what you pay is worked out can change in any budget too.
Labour set the CO2 based banding in 2001.
The Conservatives changed that system for 2017 to more of a flat rate system with a few strings attached for expensive models and CO2, but they did decided it was perhaps wise not to back date it to pre April 2017 models, for reasons already mentioned.
You can only guess at what the future holds for VED, but as EV's are becoming more popular, they are a bit of a double whammy for a government that needs to rake in tax (presently free of VED and no fuel duty), you don't need to be Nostradamus to see something will change soon to claw lost revenue back from somewhere.
We might be looking at road pricing before too long.0 -
What year are we in? Road tax was abolished in1937. Is it a Peugeot 308? They were introduced in 2007. 70 years after road tax abolished. So no road tax to pay. I am confused.0
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I used to have an X reg. 1300 Jimny. The tax was on engine size and would be £160 now.
The Y reg ones were taxed on emissions, and would be £260 now!!!
The new one is taxed at the single rate, and is £145 now.
What I saved on tax for the old one in the 10 years I had it, completely offset the depreciation.I want to go back to The Olden Days, when every single thing that I can think of was better.....
(except air quality and Medical Science)0 -
What year are we in? Road tax was abolished in1937. Is it a Peugeot 308? They were introduced in 2007. 70 years after road tax abolished. So no road tax to pay. I am confused.
You know full well what the OP means. Everything is a tax on the poor, only the name changes
I want to go back to The Olden Days, when every single thing that I can think of was better.....
(except air quality and Medical Science)0 -
What year are we in? Road tax was abolished in1937. Is it a Peugeot 308? They were introduced in 2007. 70 years after road tax abolished. So no road tax to pay. I am confused.
That's OK. Just go and have a wee sit down while the rest of us sort it out. The 2006 changes brought bigger differences and there are some very nice, big engined non-turbocharged cars that are being killed but RFL that is, like, a quarter of the car's value. I've actively bought 2 pre-2006 cars just because they'll be cheaper to 'run'.0 -
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