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Thread: Car tax Rise for cars after 2001

  1. #1
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    Default Car tax Rise for cars after 2001

    From The Times
    April 30, 2008
    Secret tax adds £200 to cost of running family cars


    Ben Webster, Transport Correspondent
    Tens of thousands of families will have to pay up to £245 extra a year under new road tax rules after a covert government decision to include cars up to seven years old.
    The Treasury admitted to The Times last night that it was quietly abolishing the exemption for older cars from the highest rates of vehicle excise duty. This means that owners of larger cars bought since March 2001 will find that their road tax will rise steeply from next April.
    The increases are being introduced in two stages, with many owners who are now paying £210 a year being charged £300 in 2009 and up to £455 in 2010.
    The revelation comes amid motoring costs soar. Petrol prices reached £5 a gallon yesterday. One consumer body believes that by next year it could cost £84 to fill an average car with fuel.

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    The new road tax was announced in last month’s Budget but its impact is only now becoming clear.
    Owners of models of the Renault Espace, Vauxhall Zafira, VW Sharan, Ford Galaxy, Citroën C8, Vol-vo XC90 and others that emit more than 225g of carbon dioxide per kilometre, will pay £430 in 2010 compared with £210 this year. Owners of medium-sized cars that emit more than 180g/km, including some Ford Mondeos, will find taxes rising by up to £100.
    Those who try to sell their cars will find that the value has fallen sharply because of increases in fuel prices and road tax. The AA said that many people were falling into a “negative equity” trap, with their cars worth thousands of pounds less than outstanding loans.
    Motoring groups said that it was unfair to penalise families who bought their cars several years ago, when people knew less about the consequences of CO 2 emissions.
    The Government began varying road tax rates in 2001 but did not introduce the band G rate for cars that emit more than 225g/km, until March 2006. In the Budget that year, Gordon Brown, then the Chancellor, said that no car registered before March 23, 2006, would have to pay the band G rate.
    In last month’s Budget, Alistair Darling announced a new system of 13 bands, from A to M, coming into force next April and a showroom tax of up to £950 starting in April 2010. The Chancellor said that the changes would raise an additional £1.2 billion up to March 2011 but failed to make clear that a significant portion of this would be paid by owners of older cars who would lose their exemption.
    Paul Watters, head of roads policy at the AA, said: “The Government presented the changes as means of influencing people’s purchasing decisions, but it turns out that they are also penalising hard-pressed families who have been running the same car for many years.
    “This will hit people who are already struggling to pay higher fuel bills and who bought their cars in good faith, not realising that the Government would move the goalposts.”
    Information about the new rates is buried in an appendix to the Budget report and is not mentioned on the DVLA’s website page on vehicle tax.
    Nigel Humphries, of the Association of British Drivers, said: “This impacts hardest on poorer families who need larger cars. Such drivers may not even realise the huge rises on older Mondeos, Lagunas, Vectras and Galaxies even with middle range engines until VED renewal time. Even some smaller cars such as Astras and Focuses are hit.
    “The arrogance of Darling is astonishing. When questioned in a radio interview following the budget he suggested that those affected needn’t pay higher VED as they could buy new cars. Just how are they supposed to do that when food, council tax and mortgages are all up way above inflation?”
    A Treasury spokesman said: “The Budget 2008 reforms aim to ensure that there are appropriate and consistent VED signals across the VED system — the more polluting the vehicle, the more VED it will pay — to encourage the purchase of fuel-efficient vehicles.
    "Cars emitting over 226g CO2/km but bought before Budget 06 will move into Band K in 2009-10 — and will continue to benefit from a reduced rate, and only in 2010-11 will these cars be placed into the band that corresponds to the car’s CO2 emissions.”
    Will you have to pay?
    — Check your car’s CO2 emissions on your V5c vehicle registration certificate. It’s on the second page in section 4 under “vehicle details”
    — Then check the rate for that emission level on p122 of Chapter A of the supporting documents on the Budget 2008 website: http://www.hm-treasury.gov.uk/media/...8_chaptera.pdf
    If the purpose of higher VED is to help reduce emissions rather than raise revenue, wouldn't it be better to reduce speed limits instead so we all use less fuel, have fewer accidents and emit less? Ah, but then revenue from fuel duty would fall too. Cleaner air but less dosh for the treasury.
    Fiona Bonney, Oxford, Unitd Kingdom
    Oxford will be my witness to using cars only i had to, my last statement to oxford times 15years ago, it's not the big cars are our problem, it's the way the cars system is abused, why hurting those who needs bigger vehicle-for-bigger families?
    Cllr Ken Tiwari (Independent), Oxford , United Kingdom
    Its about time that this flawed logic making it cheaper to tax a really old and polluting car than a new and polluting car was addressed. As it stands people are encouraged to seek out the really old "vintage" cars in spite of their appalling fuel consumption and pollution characteristics.
    Steven Groffel, London,
    Just in case you, my British friends, have forgotten recent history, remember that here in California, we recalled a governor who tripled our vehicle taxes. That wasn't the only issue, but it was something everyone could relate to. Perhaps this will give you some ideas, perhaps not.
    Paul Woodside, San Jose, California
    I own a 1990 1.1 Ford Fiesta and a 1996 Ford Escort 1.6 and pay no tax on either.Road tax doesn't exist in France.Just as well as petrol is 1.4 euros a litre.
    stephen hulton, eure, france
    I am stuck with a 15 year old landrover, no-one will buy it, i cant save enough to buy a new car as deisel and road tax are too expensive so i'm stuck running it. If they really wanted me to stop using it the government would set up a part exchange program to help me rather than just punish me!
    Mike Robinson, Plymouth, UK
    Vehicle owners already pay tax on the fuel they use! Although expensive it is somewhat fair; the more you use the more you pay. Road tax is a punishment for the crime of owning a large car whether it is used, and truly reflects the politics of envy and spite! Which just about sums labour up!
    peterj, Malvern,
    It's hard to believe that a British government would apply retrospective taxation. It goes against all notions of natural justice. Car-buying decisions aren't made lightly, but to tell someone years later that he made the wrong choice is criminal. Ah, but what can one expect of NuLabour?
    Chris Palmer, Southampton, England
    This is a joke. Though I'm lucky to have brought a diesel astra paying £35 per year for tax but I also have a petrol campervan and that tax is already almost £200. Though I know it wont be going up any time soon, its ridicous to think that the government are playing us around like this.
    Chris Ray, Rayleigh, UK
    "They have the usual socialist problem. They have run out of other people's money". - Margaret Thatcher.
    Tom Welsh, Basingstoke,
    Two years ago I was an active member of the Labour party but by 2006 I could see the writing on the wall. I won't vote Labour again. Those who are concerned about what this government are doing should take solace in the fact that it has almost run its course and Mr Brown will soon be out of a job
    Brandon, London, United Kingdom
    It is fundamentally wrong to tax people retrospectively. This government has lost touch with the concepts of right and wrong. I'm surprised there isn't an uprising to prevent them harming the country more before they can be ousted at the next election.
    Stephen, Cambs, UK
    Is the Government deliberately making itself as unpopular as possible? It seems determined to watch the population is supposedly represents get squeezed into 'adult poverty'. At this rate, I will be astonished if there isn't a no-confidence vote soon. This is not the purpose of a government.
    Glen Davies, Nottingham, England
    So my 1992 Ford Fiesta diesel and my mates 1991 BMW 318i are now cheaper to tax than anything built after 2001? That surely not right ? Think we'll be hanging on to them for a bit longer.
    Roy Winn, Rayleigh, Essex,
    It is such a joke the whole environmental game the politicians are playing!!. because of laws in Germany and Italy prohibiting the building of atomic power stations which when you are honest about it is the only real solution to the CO2 problem , the increasing price of oil and gas is allowing them
    Nick P., Camberley Surrey, UK
    No surprise is the nicest surprise; Labour as always is consistent. Remember that low inflation from 'Prudence' Brown? 2008: Fuel is now up some 40% in a year, lagging eggs up 50%, butter +60%, so vehicle licences will be moving up in line with food prices.
    Damian, Brighton, UK
    It's absolutely appalling. Yet more stealth taxes and for most people owning an older vehicle, there is no easy way of finding out what the revised upwards road tax will be without knowing the emissions figure. The sooner this government quits, the better.
    Dwight Vandryver, Scholar Green, Cheshire, UK
    How else do you think the government is going to raise the billions it needs just to cover the existing debts? Wake up people, this is just the start. Socialism costs money, a lot of money!
    ian, Tokyo, Japan

  2. #2
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    It just beggars belief

    Forget the weekend car, what about the daily runner? You go along thinking that your car is a good balance between size/cost/emmisions and you get blasted by these t*****s. How come they haven't made this rise well known?

    I drive a diesel car for work and it has now come to the point that it is costing ME because i am paying £5.35 a gallon around here. The Govt tax rates (that my company uses to assess how much they refund per mile) is still based upon 106p / litre. They are getting us from every angle.

    Watch the value of pre March 2001 cars rocket.

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    francisn is offline Post whore with no life, no friends, and a problem fitting into normal social circles Admin dude
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    Just retaxed my 1996 2.5L Vauxhall Omega.

    £185

    Maybe it will go up in value - if it doesn't fall apart first

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    I will be taking my 1968 mk 1 escort to work soon

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    Its not really a secret, this rise was announced in the budjet a few months back!

    I do agree that changing the road tax rates retrospectively is a out of order and unfair, those that bought their car based on safety ratings and pricing at the time and now will have not choice but to pay (in some cases) a lot more, its not as if they had a warning 7 years ago stating the tax may double...

    The problem is no 'new' government will change this ruling, once a tax is set, no government will backtrack.

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    I still don't see why they can't scrap VED and put it on petrol instead if it's supposed to be an envrionmental tax. Those of us who drive 'polluting' cars for 3000miles/yr will rightly pay less than the reps in their diesel Mondeos doing 30,000/yr.

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    stevew is offline Post whore with no life, no friends, and a problem fitting into normal social circles Expert
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    Quote Originally Posted by Kenyon View Post
    That's a handy link Justin, cheers

    Classic car ownership is going to become popular

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    About another fiver a week for some

    Will this help the value of earlier 348s

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    Hud is offline Post whore with no life, no friends, and a problem fitting into normal social circles Club Member
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    Quote Originally Posted by stevew View Post
    That's a handy link Justin, cheers

    Classic car ownership is going to become popular

    Speak to your accountant about being self employed and running a classic car as your company car........ interesting what can be done at no tax for the individual.

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