[neilev]

Buying a new car in the uk in 2017 here is what you need to know

Good to see its still free for ev's less than 40k that is, Sorry tesla owners

 

[Fraservet]

It's difficult to interpret - some sources it looks like EVs will be £0 tax regardless of cost?

Vehicle Excise Duty (VED or 'car tax') – MAJOR CHANGE – Today the Chancellor announces a major change in the structure of VED. From April 2017, all new cars registered will be classed in one of three new VED bands: Zero-emission, Standard and Premium (cars with a list price of over £40,000).

So maybe Teslas will still be ok?

 

[Fraservet]

Found another source that seems to confirm >40k EVs do pay the £310 tax
Not sure what the justification is for charging people more for buying a nice car - we already pay tax on our incomes and surely it's up to us how we spend it!
The price of a car surely doesn't affect its cost to the government in road maintenance!

 

[eddiec]

The 2017 VED bands are ridiculous. The current system has done a lot to encourage people to buy more efficient vehicles.

If the Chancellor wants to raise revenue then why not just adjust the CO2 emissions on the current system so that more vehicles fall outside the £0 and £30 bands.

 

[proddick]

Rather than heresay here is link to official information

Vehicle Excise Duty - Publications - GOV.UK

Remeber only vehicles registered after this date are impacted.

 

[proddick]

The 2017 VED bands are ridiculous. The current system has done a lot to encourage people to buy more efficient vehicles.

Welcome to a Tory only goverment...

This has been discussed in other threads but their intent is to discourange new purchase with high first year tax. If so called "hard working families" need a 2 year old SUV (in 2019) they dont get heavily taxed on it.

 

[proddick]

In 2022 a five year old Tesla will have zero RFL. About when i will be able to afford one

 

[richtrash]

The 2017 VED bands are ridiculous. The current system has done a lot to encourage people to buy more efficient vehicles.

If the Chancellor wants to raise revenue then why not just adjust the CO2 emissions on the current system so that more vehicles fall outside the £0 and £30 bands.

It doesn't target the people who do lots of miles and therefore contribute more to pollution, is it fair that someone who only does 5K miles a year pays the same as those who do 20K plus they should just leave it as it is and load more on petrol and diesel.

 

[eddiec]

I suppose ultimately, when everyone is driving an EV, they will need some way to pay for the roads and a flat rate VED would be fair. We aren't there yet though so it just seems like a huge retrograde step to charge an i3 Rex owner the same as something like a Focus RS.

 

[proddick]

It doesn't target the people who do lots of miles and therefore contribute more to pollution,

It isnt suposed to by policy. Duty on fuel does that which is why I agree with idea of raising duty when fuel prices drop...

The RFL idea is to be fairer. If someone doesnt do a lot of miles then they are best person to buy a second hand high emission car. For example we have a forum member who moved from a Zoe to an old Mazda RX8. He does very few miles a month so why should he pay excessive RFL?

 

[proddick]

We aren't there yet though so it just seems like a huge retrograde step to charge an i3 Rex owner the same as something like a Focus RS.

The i3 driver will only pay RFL if they have a REX. Even then his/her taxation burden will be hugely lower than RS driver who is constantly filling up, paying duty and VAT.

 

[eddiec]

It isnt suposed to by policy. Duty on fuel does that which is why I agree with idea of raising duty when fuel prices drop...

The RFL idea is to be fairer. If someone doesnt do a lot of miles then they are best person to buy a second hand high emission car. For example we have a forum member who moved from a Zoe to an old Mazda RX8. He does very few miles a month so why should he pay excessive RFL?

I can see where you are coming from but shouldn't we be discouraging the building of high emissions vehicles in the first place then nobody has to drive them?

The new system will not encourage people to buy more economical vehicles.

 

[proddick]

shouldn't we be discouraging the building of high emissions vehicles in the first place then nobody has to drive them?

I agree and the high rates of RFL on first year may help. Personally I think high rate should apply for 2 or 3 years to impact fleet buyers but not penalise less afluent used buyers. Suspect this was lobbied against by JLR who are UK employer, etc. They want to keep selling Evokes...

 

[Tony Hoyle]

Rather than heresay here is link to official information

Vehicle Excise Duty - Publications - GOV.UK

Remeber only vehicles registered after this date are impacted.

"Cars with a list price above £40,000 will attract a supplement of £310 on their SR for the first 5 years in which a SR is paid."

Still ambiguous. Does a zero emissions car on the £0 rate count in that? They haven't paid..

 

[Hitstirrer]

"Cars with a list price above £40,000 will attract a supplement of £310 on their SR for the first 5 years in which a SR is paid."

Still ambiguous. Does a zero emissions car on the £0 rate count in that? They haven't paid..

An interesting spin. But the previous line says " .....which will pay £0 ". So using that phrase means that they have paid - but just paid £0.

Quote "A flat Standard Rate (SR) of £140 will apply in all subsequent years, except for zero emission cars which will pay £0. Cars with a list price in excess of £40,000 will incur a supplement of £310 on their SR for the first 5 years in which a SR is paid."

I read it as meaning that EV's pay £0 unless they have a sale price of >£40k. In which case they pay £310 supplement over £0 for 5 years. ICE cars will pay £140 unless they are also >£40k in which case they pay £140 + £310 for 5 years.

 

[richtrash]

The new VED rules are easy to understand then

 

[Electric Toad]

All useable EVs (for 'normal' people) are likely to have a list price over £40k so if they want to promote low carbon it would have to be free tax. How much does a hydrogen car cost?!

 

[gzoom]

All useable EVs (for 'normal' people) are likely to have a list price over £40k so if they want to promote low carbon it would have to be free tax. How much does a hydrogen car cost?!

I persume when you say 'normal' you meant to say 'high rate tax payer'

 

[Electric Toad]

'Normal' = having to put in more than zero effort

 

[Ralf]

For example we have a forum member who moved from a Zoe to an old Mazda RX8. He does very few miles a month so why should he pay excessive RFL?

Heh, I've just moved from an RX8 to a PHEV and my first tankful cost me less than 8p per mile compared to over 29p per mile in the RX8.

Trust me, @proddick is right - the high fuel duty very much WAS a good incentive to drive that car less - for instance I was already paying 6p per mile in VAT and 13p per mile in fuel duty, so over a year I was paying more than £1500 in taxes and duties on fuel. The VED (road tax) just felt like a stab in the back - I was paying over £500 per year just to own the car. Even if I only drove it 10 miles a week as a weekend car. The fuel duty seemed fair (but high), the VED was very unfair.

The new rules do seem a lot fairer in many ways, although I would still have favoured some slightly tiered system (just not excessively punitive as it was before). The problem is that this first year tax will just become part of the initial purchase price, just another item on the invoice before the monthly PCP payment and it won't really affect people's buying choices.

What is a real shame is that the incentives for PHEVs has been lost before that market segment has really hit its stride of gaining wider public awareness.