Great timing / Price increase

[davo245]

About time they upped this LUXURY car tax threshold to 60k!!
So many cars falling into it now madness.

[SRGTD]

About time they upped this LUXURY car tax threshold to 60k!!
So many cars falling into it now madness.

Highly unlikely IMHO; it’s an easy revenue generator for HM Government, and as we’re told there’s a £20bn hole to fill, I think the £40k threshold is here to stay.

Reference to it being a luxury tax was removed from the VED rates section on www.gov.uk website long ago - maybe that was an acknowledgement by HM Gov that it’s not a luxury tax. It’s a stealth tax, and with the £40k threshold remaining unchanged and car manufacturers typically increasing prices 2 - 3 times a year, more and more people get dragged into paying it.

[fredgroves]

You definitely aren't paying less tax on anything any time soon...

[P6GTD]

I’ve only ever bought for cash, other than to get the PCP contribution and promptly cancel.
But……we are all well informed buyers and owners, like maybe 5% of the car buying public.
Most are seduced by the buying experience, encouraged by the sales person’s first and only question “what is your monthly budget?”
This whole approach by the motor trade is essentially selling a financial product but how many customers are/will be entering VED costs which are not being disclosed or considered?
How about raising the 40K limit to 50K and at the same time including electric vehicles? That would fill the hole pretty quickly with all these big, heavy, road ruining, v expensive electrics.
Grrrrrrrrr

[fredgroves]

Luxury car tax comes in on electric vehicles from next year and also applies to ones already on the road (eg 3 years old)

Apparently about 70% of electric cars on the road will be helping fill the treasury coffers very soon

[P6GTD]

That should come as an unpleasant shock then!
Thank you for giving me a better start to the week Fred.

[SRGTD]

That should come as an unpleasant shock then!
Thank you for giving me a better start to the week Fred.

IMHO EV’s should never have been exempt from paying the higher rate of VED on £40k+ cars. It isn’t an emissions-based tax, it’s a tax based on vehicle list price, so if owners of ICE cars with a list price of £40k or more have to pay it, then so should owners of BEV’s with a £40k+ list price.

It was probably part of HM Gov’s plan all along to pull the plug on EV’s being exempt from the £40k+ VED. Not having to pay it initially was an incentive to encourage people to switch from ICE’s to BEV’s - same as the Government plug in grant for electric cars which I think was reduced over time and then stopped altogether a few years ago (I think grants are still available on electric vans though to encourage businesses to make the switch to EV).

[joe6]

That should come as an unpleasant shock then!
Thank you for giving me a better start to the week Fred.

But you won't be paying the extra fuel duty  expected in the October budget so not all bad.

[fredgroves]

That should come as an unpleasant shock then!
Thank you for giving me a better start to the week Fred.

IMHO EV’s should never have been exempt from paying the higher rate of VED on £40k+ cars. It isn’t an emissions-based tax, it’s a tax based on vehicle list price, so if owners of ICE cars with a list price of £40k or more have to pay it, then so should owners of BEV’s with a £40k+ list price.

It was probably part of HM Gov’s plan all along to pull the plug on EV’s being exempt from the £40k+ VED. Not having to pay it initially was an incentive to encourage people to switch from ICE’s to BEV’s - same as the Government plug in grant for electric cars which I think was reduced over time and then stopped altogether a few years ago (I think grants are still available on electric vans though to encourage businesses to make the switch to EV).

It was a grant (the VED break)... and like all grants its to encourage uptake of whatever.... and now its coming to an end. It was to supposedly give a break to the initial high price of electric vs ICE because apparently once BEV gets up and running the prices of vehicles will fall   

The exit strategy from a grant scheme is always painful and causes a cliff edge in the market place.

I'm just quit surprised there wasn't a grandfather clause (ie its for NEW registrations going forward not applied to existing vehicles under 5 years old)

Before anyone says it, the last government was responsible for this...

[Rudedog]

I'm sure others might have seen this - always an interesting take on the EV/alternative fuels debate but this one shows that the UK could potentially be standing on it's own in around 5 years time.

https://www.youtube.com/watch?v=DwUDR8WTTKQ