Road fund licence increase?

Greylag

The Government have decided  that motorhomes with a £40000, or greater price tag will have their VED based on emissions where as at the moment they are treated as light goods vehicles. This only applies to motorhomes of up to 3500kgs in weight. (Larger motorhomes heavier that 3500kgs will continue to be taxed at the commercial rate of £165 a year.) In practise this means the any motorhome costing over £40000 (the majority)  will be treated as a luxury car and be libel for an initial £2125 VED on purchase and there after £465 compared with the current £265 annual VED. It does seem a bit vindictive as people who buy motorhomes, I suspect, are not the same people that buy luxury cars. It will be interesting to see how many people uplate their 3500kgs motorhomes to a higher weight in order to avoid the ongoing £465 annual VED.

David

Some more info for you from previous discussions, Greylag. If you scroll through the Motorhome section there are a couple more threads that you might like to catch up on.

https://www.caravanclub.co.uk/club-together/discussions/information-technical-tips-advice/motorhomes/increase-in-new-motorhome-1st-registration-fee/

I am about to take delivery of an Elddis Encore 255 2019 model. Has anyone who has one any comments good or bad?

Moderator Edit:

Please would you repost your enquiry as a new thread in the Motorhomes Section so we can keep this discussion on topic.

Many Thanks.

I think you are more likely to get answers if you start a new discussion rather than tack onto this one. People won't see what you are asking for, only seeing a thread entitled Road Fund Licence Increase.

Moderator Edit:

Many thanks Wherenext.  Hopefully this will be reposted as a new thread and people won't get sidetracked and go off topic. 

Plus if all the comments were negative, it appears you are now stuck with your decision.

Thanks for that.......

I was thinking about buying a new Peugeot van conversion this year (maybe at the show) and having checked the emissions data it seems the first year tax will be £2135 (for a vehicle over £40,000) plus an extra annual tax of £320 for each of the first five years (£1600 total plus normal annual duty) as the emissions of 287 g/km are in the highest band. So, an extra £3735. I guess that's only 6% or so of the purchase price but still a bit of a blow.  May have to rethink.

Hitchglitch

I wonder if we will see manufacturers introducing very basic models of van conversions to get them under the £40000 threshold? Could they get round the higher rate VED by offering a whole list of spares which whilst taking the total cost of the van over £40000 it might avoid the extra tax? I suppose it depends whether the new rates are based on the basic price or with spares added. Glad we decided to change our van earlier in the year.

David

from memory, Elddis have three new PVCs at under £40k, i think some of the Conti budget ranges might just sneak under...

although i think the new level VED tax is (will be) still applicable on used vans throughout the first six(6) years, buying used at say trhee years old would offset the total hit.

similarly, buying a used van (sometime in the future) that was first registered prior to the introduction wpuld avoid it altogether and give a better van for the same (or less now) money.

We are going to the dealers tomorrow to look at pre-registered 2019 motorhomes to avoid the price increase. They say that the “luxury tax” doesn’t apply but I think that’s wrong. We’ll see!