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Revised VED Rates from April next year

Community Veteran
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Registered: 15-06-2007

Revised VED Rates from April next year

I admit that I wasn't aware of this - probably because I wasn't thinking of buying a new car
https://www.gov.uk/government/publications/vehicle-excise-duty/vehicle-excise-duty
So basically buying a 1 year old car where the cost new was less than £40,000 lands you with a standard rate of tax of £140 per year
So where is the tax incentive to buy a low fuel consumption car
3 REPLIES
SpendLessTime
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Re: Revised VED Rates from April next year

This affects cars first registered after 1 April 2017.
So all cars before that date will still have their current VED status (y car will keep its £20 yearly VED)
As to why, well too many new cars are now fuel efficient and the Tories want the tax money. When a 4 wheel drive, 2 tonne car can have zero VED, you can see why the tax collected has dropped so the Tories have changed the rules to grab back the money.  Angry
Community Veteran
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Registered: 21-03-2011

Re: Revised VED Rates from April next year

As more people switch to high efficiency cars the Treasury "take" on VED tax is reduced, so the Government needs to recover that money. The easiest way to do that is to tinker with VED rates.
The most effective place to tax fuel consumption/pollution is at the pumps in the garage. It is impossible to avoid and is simple to collect.
The primary purpose of the old Road Fund Licence was to ensure vehicles were registered and the owners were traceable.  Tacked onto this scheme was MOT checking and Insurance checking. VED should be reduced to £50 to cover the cost of running the DVLA and the remaining tax element switched to fuel tax.
Now Zen, but a +Net residue.
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Re: Revised VED Rates from April next year

Quote from: SpendLessTime
As to why, well too many new cars are now fuel efficient and the Tories want the tax money. When a 4 wheel drive, 2 tonne car can have zero VED, you can see why the tax collected has dropped so the Tories have changed the rules to grab back the money.

Or... their mates were all complaining about having to pay too much to tax their Bentleys and Range Rovers  Lips are sealed
Fuel duty already effectively collects a hefty mileage and consumption based tax, around 69p/litre (including VAT) is tax (that's about £3.16/gallon), if you get 30mpg and cover a not untypical 15000 miles per year then you pay about £1580 in tax per year, at 60mpg you'd pay £790 for the same yearly mileage and at 15mpg you'd pay £3160 - this all makes the VED charge look pretty pointless.
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