VED Shake up Announced in Conservative Budget

Fr0dders

Fr0dders

Fr0dders

Caporegime
Joined
18 Oct 2002
Posts
33,467
Location
West Yorks
http://www.bbc.co.uk/news/business-33447106

For cars registered after 1 April 2017, VED will be transformed into three bands - zero, standard and premium.
George Osborne said the "standard" charge of £140 would cover 95% of all cars. Revenues will be paid into the Roads Fund from 2020-21
Click to expand...

So then, an end to diesels paying silly low amounts of VED when the manufacturers run engine maps specifically optimized for the EU tests. ?
 
Last edited:
Always confused me that it was based on emissions: a low emission car could pay little VED and do 20,000 miles emitting far more CO2 in total than a high emission car that may only be used at weekends :confused: Still not a fair tax but slightly less baffling as it's more or less a flat rate.
 
Last edited:
Whilst these new bands make a lot more sense I still don't know why they don't just abolish the separate VED and put it on fuel instead. The more you drive, the more you pay. Surely that's the fairest way.
 
I always felt that the costs involved in the admin for VED must have been pretty sizeable in comparison to the amount of revenue it actually generated.

Simplifying it is surely a good thing.
 
Howard said:
Whilst these new bands make a bit more sense I still don't know why they don't just abolish the separate VED and put it on fuel instead. The more you drive, the more you pay. Surely that's the fairest way.
Click to expand...
Definitely, seeing as CO2 emitted is in line with fuel used, more fuel efficient or lower mileage users will pay less tax as they are using less fuel/emitting less CO2. But that sounds like a fair system of taxation so will never catch on.
 
Stringy said:
Definitely, seeing as CO2 emitted is in line with fuel used, more fuel efficient or lower mileage users will pay less tax as they are using less fuel/emitting less CO2. But that sounds like a fair system of taxation so will never catch on.
Click to expand...

Indeed,

I would also like to see a way for the RTA aspect of Insurance to be put on fuel too (Similar logic applies) and administered through a central fund.

Insurance cover for the actual machine would then be simply optional.

(Actually, I would go one step further on this, but more later possibly)
 
Howard said:
Whilst these new bands make a bit more sense I still don't know why they don't just abolish the separate VED and put it on fuel instead. The more you drive, the more you pay. Surely that's the fairest way.
Click to expand...

I'd actually advocate this too, even though it would almost certainly end up more expensive for the amount of miles I do.

Quick sums (very rounded to make the maths easy):

- Average UK miles per year ~8k?
- Average MPG ~36, (so ~8mpl)?

So very roughly average drivers fuel consumption per year is 1000 litres.

To cover the new 'standard' charge of £140, you'd therefore need to increase cost of fuel by ~14p.

As I say, just a very quick rough calculation to get a ballpark figure.
 
Won't the 40k step change almost cause a premium car rrp "sweet spot" of £39999? Thus almost helping reduce the price of cars going up and up? Isn't that good?

a flat rate for cars makes more sense (to me anyway). If the intention is to charge/"punish" those that use the roads more, or have thirsty cars, then they get that through all the tax that's already on petrol (the more miles you do and the more thirsty the car then the more petrol you use). Car tax related to emissions plus the tax on petrol (as it is at the moment) is effectively taxing thirsty cars twice.

Reducing the ved on what are thirsty cars should make it more appealing to have a "sporty" weekend/track/project car, as at the moment the higher tax bands £260-500 is just too much for a car that's only used rarely. So, all in all, surely it's good for those that enjoy their cars ;) But, will it just ripple into more tax on fuel?
 
An opportunity missed. For goodness sake, why don't they just add it to the cost of fuel and get rid the the daft VED once and for all. That way, you pay for what you use!!! Simples!!!!!!!!
 
wesley said:
so that means £140 road tax for bmw M5 or V8 range rover
Click to expand...

£140 per year VED, plus

- £1,700 in the first year
- A suppliment of £310 per year for 5 years

DereksDontRun said:
Won't the 40k step change almost cause a premium car rrp "sweet spot" of £39999? Thus almost helping reduce the price of cars going up and up? Isn't that good?
Click to expand...
It could mean manufacturers change the base spec of the car to meet £39k, leaving scope to add in the spec with options.
I'm guessing it's doubtful though - it would mean siginicant manufacturing costs to change the specification of cars for just the UK Market.
 
Last edited:
This was inevitable. More cards producing less CO2, Gov looses out so they change the requirements - was going to happen sooner or later.
 
You must log in or register to reply here.
Back
Top Bottom