Luxury Car Tax RIP - Budget 2020

[Jason71]

2.224 VED: Zero emission vehicles (ZEVs) – From 1 April 2020, the government will exempt all ZEVs registered until 31 March 2025 from the VED ‘expensive car’ supplement. The measure will incentivise the uptake of ZEVs to support the phasing out of petrol and diesel vehicles. (44)

I assume this means it will apply to ones already on the road not just ones sold from the 1st of April

 

[Chanser]

Great news, luckily my car got delayed.

 

[squarepeg77]

>> I assume this means it will apply to ones already on the road not just ones sold from the 1st of April

I wish! But I doubt it.

Mine is due at the end of March, so I will watch this carefully

 

[Mr Sneeze]

It reads as cars registered up-to 31 March 2025 but it doesn't specify a start date. I would say that means all existing ZEVs on the road at the moment and all registered in the next five years. The same way a change to the VED rates for non-ZEVs apply to all existing cars too.

 

[drewpost]

Man I hope this is retroactive. May even be worth doing a transfer of owner to trigger it if it's not automatically made retroactive.

 

[OfficialMark_H]

It reads as cars registered up-to 31 March 2025 but it doesn't specify a start date. I would say that means all existing ZEVs on the road at the moment and all registered in the next five years. The same way a change to the VED rates for non-ZEVs apply to all existing cars too.

I agree, I read it that all cars registered before 31st March 2025.
That’s good news.

 

[SamBGB]

I believe this will come into effect with the UKs new financial year starting 6th April.

 

[dakaix]

"Vehicle Excise Duty: exempt zero emission vehicles from the expensive car supplement

This measure exempts all electric vehicles from the Expensive Car Supplement. It will be implemented from 1 April 2020."

Source: https://assets.publishing.service.g...e/871576/Budget_202_Policy_Costings_print.pdf

 

[Jason71]

I believe this will come into effect with the UKs new financial year starting 6th April.

No this will come into effect for licences bought from 1st of April and will include existing EV's not just ones bought on or after April 1st

 

[Jason71]

It reads as cars registered up-to 31 March 2025 but it doesn't specify a start date. I would say that means all existing ZEVs on the road at the moment and all registered in the next five years. The same way a change to the VED rates for non-ZEVs apply to all existing cars too.

That is correct

 

[Mrklaw]

How much does that save on a borderline car like the Sr+?

 

[Jason71]

What it also means is that if you have a car more than a year old and so have already started paying you can recover some money.
If you have more than one month left on your current licence there should be no reason why you cannot SORN your vehicle on the evening of 31st March then re-tax it on the Morning of the 1st of April and recover any remaining full months at a rate of £26.70 per full month.
Unless you are paying by monthly DD in which case you do the same but stop paying at that rate for however long is left on your DD.

 

[Jason71]

How much does that save on a borderline car like the Sr+?

£325 per year for 5 years so £1625

 

[CMc1]

"Vehicle Excise Duty: exempt zero emission vehicles from the expensive car supplement

This measure exempts all electric vehicles from the Expensive Car Supplement. It will be implemented from 1 April 2020."

Source: https://assets.publishing.service.g...e/871576/Budget_202_Policy_Costings_print.pdf

Also says costing based on EVs over £40k registered since 17/18. So I think it’s fair to say that’ll be the baseline.

 

[dakaix]

How much does that save on a borderline car like the Sr+?

It's not pro-rated based on the vehicle value, it was a hard limit for vehicles with a list price above £40k (pre-OLEV grant) and therefore applied to all Tesla vehicles. If true that this applies retrospectively it's a saving of approximately £1600, or £320 you don't need to pay in years 2-5 of ownership.

 

[Mrklaw]

Makes sense on fringe cars hovering around £40k as larger battery packs eat up a lot of cost. You can’t really say a Iona is a luxury car but is mid £30k

probably an argument to raise the ceiling rather than scrap - an eye on is still clearly luxury as is a model s for example

 

[JupiterMan]

As my car has not been delivered yet and unlikely to be in Q1, I sense a re-quote from my leasing company is in order, as this should (in theory) knock £640 off my 3 year lease cost....

 

[Durzel]

Bit of a kick in the balls if it's not retroactive, hard to read the exact intent from the wording. You could read it to mean that any £40k+ list BEV on the road now would not pay the luxury VED up to 2025, or that it only takes effect on cars registered after the policy is enacted.

 

[Andy_T_73]

Wonder if lease prices will drop during the term after April?

 

[Jason71]

As my car has not been delivered yet and unlikely to be in Q1, I sense a re-quote from my leasing company is in order, as this should (in theory) knock £640 off my 3 year lease cost....

if they were on the hook for VED then yes why not