What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
New VED rating system. - brum

Budget announcement - "95% of people will pay £140" from 2017

Looks like road tax free motoring is about to end.

New VED rating system. - jc2

But it is going to be used for roads-first time since the government pinched it in 1917!

New VED rating system. - SteveLee

But it is going to be used for roads-first time since the government pinched it in 1917!

I think 1973 was the last time road infrastructure investment matched VED income. Still - very welcome.

New VED rating system. - skidpan

But it appears it only applies to new cars registered after that date.

Mr Osbourne added "There will be no change to VED for existing cars".

So it looks like we are OK with our low VED cars. Panic over.

New VED rating system. - SteveLee

But it appears it only applies to new cars registered after that date.

Mr Osbourne added "There will be no change to VED for existing cars".

So it looks like we are OK with our low VED cars. Panic over.

Correct and MOTs movig to 4 years after registration from 3.

New VED rating system. - skidpan

I will be very interested to see how the 3 proposed bands zero, standard and premium are defined.

I guess "zero" will be for pure electric cars but where will be the changeover between standard and premium be and if standard is £140 what will premium be.

As usual as many questions as answers.

Perhaps it will dissapear like the 80 mph speed limit, remember that red herring.

With regards to the MOT the chancellor said

"In addition the Government will consult on extending the deadline for new cars and motorbikes to have their first MOT test from three years to four years?"

So its only a consultation and not a fact.

Edited by skidpan on 08/07/2015 at 15:52

New VED rating system. - daveyjp

From what I understood 'premium' will be any vehicle with a list price in excess of £40,000.

New VED rating system. - brum

Correct, and premium will be taxed at £450.

This looks like a ploy to accelerate new car sales in 2016.

New VED rating system. - skidpan

This looks like a ploy to accelerate new car sales in 2016.

Good point. But who could really be that devious when in government.

Won't make much difference to me since if I buy the new car in 2 years time I would buy today its 134 CO's or £130 a year.

New VED rating system. - Engineer Andy

From what I understood 'premium' will be any vehicle with a list price in excess of £40,000.

It'll be interesting to see if that makes any difference to the way premium marques map their engines from then on, as many do so to scrape into the lowest VED band possible, often compromising driveability.

New VED rating system. - artill

From what I understood 'premium' will be any vehicle with a list price in excess of £40,000.

It'll be interesting to see if that makes any difference to the way premium marques map their engines from then on, as many do so to scrape into the lowest VED band possible, often compromising driveability.

Probably not, as CoCar tax will still be based on EU test figures, which require that daft mapping in the first place. I cant see them selling 2 versions, one fleet, one private. And dont forget all the manufacturers still need to get their fleet averages right down to avoid huge fines from the EU.

New VED rating system. - P3t3r

I'm unhappy with their changes. Why is it not based on emissions?

The wealthy will still buy their over-sized vehicles and have electric motors so that they don't pay tax. New drivers (who struggle to afford insurance) will probably buy something environmentally friend (eg. a 1.0l engine) and still need to pay £140 for tax. People with less money won't be able to afford electric vehicles so they will all need to find £140 too.

There's no choice. At the moment we can choose how much tax we pay buy choosing between large vehicles and small city cars.

Some of the second hand values will drop for new cars too. Imagine chosing between a 2 year old car that costs £0-£20 to tax and a 1 year old car that costs £140/year to tax!

New VED rating system. - daveyjp
The zero tax is only for some zero emission vehicles i.e. Purely electric drive. The choice of these is still very limited.

The likes of Prius, Lexus h, Merc hybrids etc are not zero emission so will pay at least £140. If they cost over £40000 all vehicles will be subject to the 5 year £310 surcharge, even if they are pure electric.

Edited by daveyjp on 11/07/2015 at 12:40

New VED rating system. - P3t3r
The zero tax is only for some zero emission vehicles i.e. Purely electric drive. The choice of these is still very limited.

Yes, it's the people in the really high end stuff that will benefit. Eg. Tesla. I'm sure the luxury manufactureres will probably start offering some electric only vehicles when they realise that the buyers will get some of their money back.

New VED rating system. - alan1302

That's right - people haven't understodd how the new rates work before spouting forth! LOL

New VED rating system. - mark999
Hi all, am I right in thinking that the £310pa supplement will be based on the cars list price excluding options?

Cheers, Mark
New VED rating system. - Graham567
Hi all, am I right in thinking that the £310pa supplement will be based on the cars list price excluding options? Cheers, Mark

Your correct.If the cars list price is £39,999 then you'll pay £140 but if you stick any options that take it over £40,000 then its £450.