UK tax changes

[Andy Kay]

One of the reasons I bought the iQ3 was the annual tax bill of £30.

A friend (fellow iQ3 owner) has contacted me asking me if I can work out how this will change in March, telling me that he thinks the tax will go up to £140 but can't quite work it out.

This is a shock to me. Does anybody else know anything about this?

[Heidfirst]

it doesn't change for your existing car (at least this year - who knows what the Treasury will do in future years).

[Andy Kay]

That's encouraging.. thanks Scott.

[mickburkesnr]

I doubt they'll keep the two schemes separate though. I read the findings on Auto Express and it confused me how you could have two completely different tax bands for cars based on these emissions.

When certain political decisions start to bite, don't be surprised to see the ordinary joe stump up the cash to pay for the mistakes.

[Heidfirst]

6 minutes ago, mickburkesnr said:

I doubt they'll keep the two schemes separate though. I read the findings on Auto Express and it confused me how you could have two completely different tax bands for cars based on these emissions.

It's as you say essentially 2 different schemes - which one applies depends upon whether the car was registered before April 2017 or not.

[craggle]

Just renewed my tax so I should be good until next January. 

Hopefully it won't increase much in coming years

Craig.

[dash]

The new system doesn't encourage the purchase of low emission cars. The government have totally screwed things up !!

[mickburkesnr]

54 minutes ago, Heidfirst said:

It's as you say essentially 2 different schemes - which one applies depends upon whether the car was registered before April 2017 or not.

Yeah, but in a year or two they'll say it's been such a success that all of the post 2001(?) cars should come under it too. 

It can be spun better than "everyone gets a £20 a year increase in their car tax".

[FROSTYBALLS]

22 minutes ago, dash said:

The new system doesn't encourage the purchase of low emission cars. The government have totally screwed things up !!

It depends what is used to measure emissions.

The current system which is based on CO2, doesn't take into account the issue that diesel cars (some of which produce low levels of CO2 and are then classed as low emissions) also produce high levels of Nitrogen Oxide, which is worse for people who suffer from asthma, and other respiratory conditions, etc.

For this reason, it is the current system which is flawed.

The new system for cars first registered on or after 1st April 2017, is simpler, and goes some way to addressing the anomaly of low CO2 but high NOx emitting vehicles.

[Heidfirst]

1 hour ago, FROSTYBALLS said:

The current system which is based on CO2, doesn't take into account the issue that diesel cars (some of which produce low levels of CO2 and are then classed as low emissions) also produce high levels of Nitrogen Oxide, which is worse for people who suffer from asthma, and other respiratory conditions, etc.

For this reason, it is the current system which is flawed.

The new system for cars first registered on or after 1st April 2017, is simpler, and goes some way to addressing the anomaly of low CO2 but high NOx emitting vehicles.

call me a cynic but imo as far as the government is concerned the flaw is that the current system was no longer generating the income that it had as so many cars had achieved the level to only pay £30 or less per annum ...

[Anthony Poli]

The new system doesn't encourage the purchase of low emission cars. The government have totally screwed things up !!

I agree, so basically you can buy a plugin hybrid and still pay the same as somebody with a 2 litre petrol engine. Even if your car can just run on electric only, so going green will cost you even more. As the cars are more expensive and you end up with paying the same road tax.

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[alan333]

Isn't the original purpose of road tax to maintain the roads, and heavier vehicles would wear the road surface more, hence were more expensive to tax?  Going with that theory a heavier electric car should pay more tax than it's lighter sibling.  But along the way somewhere it seem to have became acceptable to tax based on very little to do with wearing/repairing roads and more to do with saving the planet.  Or at least this week's analysis of saving the planet, it'll be different nxt week/month/year.

[Anthony Poli]

Isn't the original purpose of road tax to maintain the roads, and heavier vehicles would wear the road surface more, hence were more expensive to tax?  Going with that theory a heavier electric car should pay more tax than it's lighter sibling.  But along the way somewhere it seem to have became acceptable to tax based on very little to do with wearing/repairing roads and more to do with saving the planet.  Or at least this week's analysis of saving the planet, it'll be different nxt week/month/year.

True, but they use the money for anything else these days. Just like the fat cats behind the utilities companies, investment was needed and they had plenty of cash(profits). Yet they still wanted their cake and eat it.

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[FROSTYBALLS]

Vehicle tax (the equivalent of vehicle excise duty) was first introduced in1888, but wasn't ring fenced for road construction until 1920. The ring fencing ended in 1937, and it became part of general taxation.

[Kuneha]

On 06/01/2017 at 6:40 PM, Heidfirst said:

call me a cynic but imo as far as the government is concerned the flaw is that the current system was no longer generating the income that it had as so many cars had achieved the level to only pay £30 or less per annum ...

Agreed.

I would have to say though I do not think the new laws will discourage people from buying new cars.