Road tax from 2025 on car that cost over £40K?
Discussion
If I buy a 2022 or 2023 fully-electric car with a new list price over £40k this year, what happens when the rules change in 2025?
Currently electric cars pay zero road tax, and are exempt from the over £40k 5 year premium.
Would I just pay the standard rate (currently £185 ish), or would the premium charge be added too?
Currently electric cars pay zero road tax, and are exempt from the over £40k 5 year premium.
Would I just pay the standard rate (currently £185 ish), or would the premium charge be added too?
ayman82 said:
I would understand it, that the rate change wouldn't happen retrospectively, so it should stay at the current level of VED.
I think in this instance the standard rate is being applied retrospectively (which is a bit of an annoying precedent), but not the over £40k premium.I could have pulled that our my behind though.
Saying all that we're likely to have a new government by then so all bets are off as to what will actually happen.
Merry said:
I think in this instance the standard rate is being applied retrospectively (which is a bit of an annoying precedent), but not the over £40k premium.
I could have pulled that our my behind though.
Saying all that we're likely to have a new government by then so all bets are off as to what will actually happen.
You are correct.I could have pulled that our my behind though.
Saying all that we're likely to have a new government by then so all bets are off as to what will actually happen.
Road tax should be on weight and aerodynamic measures. Energy used and damage to the road are proportional to how s
t both are.
Also speed limits. Anything over 1800 kg should be limited to commercial vehicle limits. And not allowed in lane 3 or 4 on the motorway.
Anything under 1000kg, should be allowed to do 85 mph on a dual carriageway or motorway.
That would encourage people to buy lighter, more streamlined cars.
t both are. Also speed limits. Anything over 1800 kg should be limited to commercial vehicle limits. And not allowed in lane 3 or 4 on the motorway.
Anything under 1000kg, should be allowed to do 85 mph on a dual carriageway or motorway.
That would encourage people to buy lighter, more streamlined cars.
https://www.rac.co.uk/drive/electric-cars/running/...
Register your expensive EVs before1st April 2025!
Register your expensive EVs before1st April 2025!
Murph7355 said:
https://www.rac.co.uk/drive/electric-cars/running/...
Register your expensive EVs before1st April 2025!
Blimey…that’s most EV’s!Register your expensive EVs before1st April 2025!
itcaptainslow said:
Murph7355 said:
https://www.rac.co.uk/drive/electric-cars/running/...
Register your expensive EVs before1st April 2025!
Blimey…that’s most EV’s!Register your expensive EVs before1st April 2025!
And then the costs will ratchet
The honeymoon had to end, and that was always going to coincide with when the govt realised there was a hole to fill and they were potless
(Or did you mean the expensive car supplement?)
itcaptainslow said:
ayman82 said:
Apologies, I was unaware. That must be the first time that's happened?
I can’t think of many. Dangerous and worrying precedent, in my book.The government policy is to move people into less polluting cars surely this is consistent with that plan. Tax revenue has to be raised one way or another. I suppose they could have reinstated the fuel escalator which may have been more equitable as it's mileage/efficiency dependent.
Because it's very rare to change motoring charges and regulations retrospectively. 
From a certain date, cars had to have rear fog lamps, seatbelts fitted, reflective number plates, catalytic converters etc and many more things. But never backdated, before. Even when cars in bands L and M had to pay a lot more VED, it was only for cars registered after it was announced on budget day in March 2006. Those registered since April 2001 up to March 2006 only pay the maximum of band L VED.
From a certain date, cars had to have rear fog lamps, seatbelts fitted, reflective number plates, catalytic converters etc and many more things. But never backdated, before. Even when cars in bands L and M had to pay a lot more VED, it was only for cars registered after it was announced on budget day in March 2006. Those registered since April 2001 up to March 2006 only pay the maximum of band L VED.
sixor8 said:
Because it's very rare to change motoring charges and regulations retrospectively.
From a certain date, cars had to have rear fog lamps, seatbelts fitted, reflective number plates, catalytic converters etc and many more things. But never backdated, before. Even when cars in bands L and M had to pay a lot more VED, it was only for cars registered after it was announced on budget day in March 2006. Those registered since April 2001 up to March 2006 only pay the maximum of band L VED.
It's not retrospective it gets implemented at a certain date just like changing personal tax rates or VAT. From a certain date, cars had to have rear fog lamps, seatbelts fitted, reflective number plates, catalytic converters etc and many more things. But never backdated, before. Even when cars in bands L and M had to pay a lot more VED, it was only for cars registered after it was announced on budget day in March 2006. Those registered since April 2001 up to March 2006 only pay the maximum of band L VED.
I suppose as an EV owner I should complain that I will also incur Road fund licence.
If a person doesn't like the tax coming perhaps change car before it is implemented and not be like the people that did not act when ULEZ was announced.
Nomme de Plum said:
It's not retrospective it gets implemented at a certain date just like changing personal tax rates or VAT.
I suppose as an EV owner I should complain that I will also incur Road fund licence.
If a person doesn't like the tax coming perhaps change car before it is implemented and not be like the people that did not act when ULEZ was announced.
It is being applied retrospectively though in the sense that previously tax exempt vehicles will suddenly be in a taxable bracket. That simply hasn’t happened with previous tax band changes or introductions.I suppose as an EV owner I should complain that I will also incur Road fund licence.
If a person doesn't like the tax coming perhaps change car before it is implemented and not be like the people that did not act when ULEZ was announced.
Why should a 2013 2.0 diesel pay less tax than a 2021 EV?
paradigital said:
Nomme de Plum said:
It's not retrospective it gets implemented at a certain date just like changing personal tax rates or VAT.
I suppose as an EV owner I should complain that I will also incur Road fund licence.
If a person doesn't like the tax coming perhaps change car before it is implemented and not be like the people that did not act when ULEZ was announced.
It is being applied retrospectively though in the sense that previously tax exempt vehicles will suddenly be in a taxable bracket. That simply hasn’t happened with previous tax band changes or introductions.I suppose as an EV owner I should complain that I will also incur Road fund licence.
If a person doesn't like the tax coming perhaps change car before it is implemented and not be like the people that did not act when ULEZ was announced.
Why should a 2013 2.0 diesel pay less tax than a 2021 EV?
It just the same as if they increased the current £180 VED rate, all cars would be hit with the increase
NWMark said:
They weren't exempt though they just had a £0 cost for VED, now the VED rate for electric vehicles is changing so all electric cars have to pay, its not being applied retrospectively.
It just the same as if they increased the current £180 VED rate, all cars would be hit with the increase
But that IS different to how any other rate increases have occurred. EVs are being MOVED to the standard VED rate, including those that were registered before the change.It just the same as if they increased the current £180 VED rate, all cars would be hit with the increase
Find an example of that happening in the past.
That is semantics really, NWMark, in the same way that some goods are VAT exempt (children's clothes etc) whilst other are considered zero-rated (cold food).
EVs made between 2001 and 2017 will be moved from Band A to Band B. That IS, in my eyes, retrospective change in taxation, there are several frugal ICE cars currently in Band A that will also be affected. It's moving the goalposts:
https://www.gov.uk/government/publications/introdu...
Even EV motorcycles will have to pay VED!
EVs made between 2001 and 2017 will be moved from Band A to Band B. That IS, in my eyes, retrospective change in taxation, there are several frugal ICE cars currently in Band A that will also be affected. It's moving the goalposts:
https://www.gov.uk/government/publications/introdu...
Even EV motorcycles will have to pay VED!
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