2015 Budget: Major reform to VED

Alan_uk

Alan_uk

A2OC Donor
News is trickling in on the budget including major reform to VED http://www.bbc.co.uk/news/business-33447106

bbc said:
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 and ring fenced for road improvements. However, the new rates will not apply in the first year after registration. There will be special first year rates linked to a car's carbon emissions.
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Big sigh of relief for existing vehicle owners, especially us A2 owners :) I wonder if electrics and maybe hybrids will be in the other 5% and exempt.

PS See Insurance Premium Tax rises from 6% to 9.5%, so for example another £10.50 on £300 motor insurance premium.
 
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You don't want to pay the first year VED on a high polluting car!

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You'll also pay an extra £310 a year for the first 5 years if your car has a list price higher than £40k
 
So once again, we'll be in a situation after a few years where the public won't be buying new cars, choosing to keep hold of their low-rate existing models. Wonder if there'll then be another scrimmage scheme in say 10 years?

If he's true to his word and existing cars will maintain their current taxation levels, I should be fortunate enough to have 2 x Audis and pay only £30 for the pair.

Cheers,

Michael
 
Skipton01 said:
So once again, we'll be in a situation after a few years where the public won't be buying new cars, choosing to keep hold of their low-rate existing models. Wonder if there'll then be another scrimmage scheme in say 10 years?

If he's true to his word and existing cars will maintain their current taxation levels, I should be fortunate enough to have 2 x Audis and pay only £30 for the pair.

Cheers,

Michael
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I was in that situation when I had the A2 and an A1 (the A1 was free) it used to make me look forward to getting the DVLA reminder !!!

Is your other Audi an A1 too?

Steve B
 
Skipton01 said:
Wonder if there'll then be another scrimmage scheme in say 10 years?
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You've got me here. What's a scrimmage scheme?. I thought that was a fight.

Are you victim of predictive text and do you mean scrappage?

Maybe in 10 years there will be a scrimmage in the commons dependant on what's happening in my homeland but I'd best not get political on the friendly forum :p
 
murdo said:
Skipton has a TT Steve. To be replaced by an A3 eTron I believe. The latter will be free VED.
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Thanks, that explains it, I thought that it might have been a coincidence. I am really liking the eTron.

Steve B
 
Yes, bizarrely, it wasn't the phone that altered the word scrappage to scrimmage, but the predictive text on here!

As has been said, I've currently got the TT TDi (which is a £145 VED car currently) but that's going shortly in favour of a specced up e-tron. I may well keep that for a while if the battery is holding up well, as it's about all the car I'll need for the foreseeable.

Cheers,

Michael
 
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