Proposed 700% road tax increase on new motorhomes
Anyone looking to buy a new motorhome either this autumn or next year should be aware of Government plans to change the classification of motorhomes from 1st September 2019.
This will result in a whopping 700% increase in the cost of Vehicle Excise Duty (VED).
Ouch! The new rates will be as follows:
|Before 1st September 2019||After 1st September 2019|
|VED on 1st registration||£265||£2,125|
|VED following years||£265||£465|
The background to this is EU regulation 2018/1832 which requires that all new sales of Light Commercial Vehicles be subject to type approval and must provide a vehicle CO2 emissions figure. This means that from 1st September 2019 all new motorhomes under 3500kg will be taxed based on their emissions in the same way as cars.
In recent years motorhome usage has been growing and has boosted local tourism and has had a positive impact on the UK economy. Inevitably this new tax will seriously affect the industry resulting in fewer sales of new motorhomes. Jobs will be at risk at UK motorhome manufacturing plants and dealers. Many believe that rather than having a favourable impact on the environment, it will in fact mean that more older polluting motorhomes will remain on the road.
The National Caravan Council (NCC) have launched a petition asking the Government to review this tax given the negative impact it will have on the industry. This is the first time the NCC has ever asked people to lobby MPs. Both the NCC and the BVRLA are lobbying the HM Treasury to reclassify motorhomes as commercial vehicles for the purpose of VED.
You can sign the petition at: petition.parliament.uk/petitions/268246
Further information can be found on the UK Parliament website at: researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8639#fullreport
This information is provided by our friends at LandCruise Motorhome Hire in Chichester. Whether you’re planning a weekend getaway, festival experience, or the holiday of a lifetime, find the perfect motorhome or campervan with LandCruise.
Please visit landcruise.uk.com for more information.