Tax Exemption under threat.

[T0nup]

For fear of being labelled a scare monger, I shall simply direct you to page 4 of Classic Car Weekly.

Make of that what you will.

Edited by T0nup on Thursday 8th November 09:40

[LuS1fer]

My 2005 Mustang is lucky to see 1000 miles ayear and I have to tax it (luckily only at £230 a year) and so, therefore, should everyone else - but the only equality guarantee is putting it on fuel and that will never happen.

Classic car owners can SORN their cars just as much as I can so why should they have VED exemption?

[austin]

For those of us unable to read the magazine what does it say?

[lowdrag]

Well, to the best of my - limited - abilities I've searched the net thoroughly and can find no reference to this anywhere. The scheme was getting expensive so Herr Braun - sorry, Brown - cut it off in 1998 to 1972 and before cars, so the loss to the Exchequer is steadily dwindling anyway. It would seem that about 300,000 cars qualify, which at a rounded £200 per throw amounts to £60 million p.a. This is hardly a sum with which the govenrment would concern itself in the overall scheme of things.

[na]

ohhh, please, please, let it be true

just think of all those pre-73 cars coming on the market lowering the (over) values of all these old cars we own

plus the biggest bonus for me - making the moany old buers even more miserable

Edited by na on Wednesday 7th November 15:18

[LuS1fer]

As my grandad used to say "Look after the 60 million quids and the billions will take care of themselves..."

[na]

lowdrag said:

It would seem that about 300,000 cars qualify, which at a rounded £200 per throw amounts to £60 million p.a. This is hardly a sum with which the govenrment would concern itself in the overall scheme of things.

how would the French government view a gain of £60m

you might not need it in France but we need it over here

[T0nup]

[lowdrag]

na said:

lowdrag said:

It would seem that about 300,000 cars qualify, which at a rounded £200 per throw amounts to £60 million p.a. This is hardly a sum with which the govenrment would concern itself in the overall scheme of things.

how would the French government view a gain of £60m

you might not need it in France but we need it over here

Hoist on thine own petard! VED was abolished here over 10 years ago yet diesel is still cheaper than in the UK. MOT is every two years and every five years for cars over 25 years. Insurance is also a lot cheaper. Like £300 for the Merc fully comp albeit with a £500 excess.

Seriously, the figure I saw in tyhe press to the effect that we give £37 million every day to the EU makes this amount a piffling sum in the overall context of running a country.

[na]

I know £60m doesn't buy an investor a decent oil painting but it's still useful to some health issues



in the UK

I always remember years ago hearing on News at Ten than some painting had been sold for a then record of £24m, next item was on CT scanners and how a hospital have just got one at a cost of £600,000 and a yearly running cost of £600,000, even with my poor maths the two news items merged

anyone who can really afford a car can really afford the taxes, that's without going into the hobbyist nature of our cars and some peoples collections/fleets

[mph]

na said:

I know £60m doesn't buy an investor a decent oil painting but it's still useful to some health issues



in the UK

I always remember years ago hearing on News at Ten than some painting had been sold for a then record of £24m, next item was on CT scanners and how a hospital have just got one at a cost of £600,000 and a yearly running cost of £600,000, even with my poor maths the two news items merged

anyone who can really afford a car can really afford the taxes, that's without going into the hobbyist nature of our cars and some peoples collections/fleets

Yes and of course every penny that's gained in additional tax will go directly to buy CT scanners or save a child or whatever other noble cause you or I support.

Get real.

Motorists pay far too much tax already, and I just can't understand why some of us seem to just roll over and not only accept further increases but even propose ways to collect them !

The shortfall in revenue is largely due to the introduction of reduced taxation for low emission vehicles, the whole premise of which is based on grossly innaccurate figures.

An 11 year old child would have realised that it would result in a drastic fall in revenue as more drivers swapped to lower emission vehicles and vehicle manufacturers progressively reduced the emissions of all vehicles.

It beggars belief that the government didn't foresee this happening.

What logic is there in having zero (or close to zero) road tax for millions of vehicles that cover tens of millions of miles ?

Classic car exemption is so insignificant as not to matter.

Still if it pleases you that some of us with more than one classic car may have to cough up a few hundred quid more than at least that's one true enthusiast kept happy.

Edited by mph on Wednesday 7th November 17:21

Edited by mph on Wednesday 7th November 17:22

[na]

mph said:

Still if it pleases you that some of us with more than one classic car may have to cough up a few hundred quid more than at least that's one true enthusiast kept happy.

that not correct

it's one or more not more than one

I have a modest increase in happiness already

[williredale]

I wonder what difference it would make to the value of my 1973 car? Not that it matters as I'm not selling and the two hundred and something I pay each year isn't much compared to the petrol I use.

[droopsnoot]

williredale said:

... and the two hundred and something I pay each year isn't much compared to the petrol I use.

Exactly. I'd love to have free road tax for my classics, all three would be exempt by now, and it probably would lead me to use them more, especially during the winter. But compared to the cost of fuel it's not really that significant especially as I currently only tax in the summer.

[GoneAnon]

Apart from VED, do we have any other tax levied purely on the right to use an asset that you have already bought and paid for, whether you actually use it or not?

I supposes there's Council Tax, but you would pay that on a rented property and presumably you are living in the property unless it's a second home but they get a discount and 2nd cars don't.

Arguably, we have VAT on the electricity to run our TV/video, fridge, etc. or the maintenance and repair of other things.

[theadman]

Television licence would be another example of an asset being taxed for use...sorry, off topic and being a pedant!

[LordBretSinclair]

Read what is says ".....some commentators fear...." that's all.

Treat it like a Daily Mail story - speculative bocks.

[roscobbc]

LuS1fer said:

My 2005 Mustang is lucky to see 1000 miles ayear and I have to tax it (luckily only at £230 a year) and so, therefore, should everyone else - but the only equality guarantee is putting it on fuel and that will never happen.

Classic car owners can SORN their cars just as much as I can so why should they have VED exemption?

Its your choice to Sorn the car and only do 1000 miles per year - but then its not exactly what most people describe as a 'classic' is it? - as you say the fairest method of taxation is to put it fuel - BUT we are already unfairly taxed on fuel compared with most other countries so that idea wouldn't work for any government. Many modern cars have such low emissions that they are effectively tax exempt anyway - so the governments real target would be more effective moving 'goalposts' to bring this potentially expanding group back in to taxation.

[2 sMoKiN bArReLs]

It's small beer either way to be honest.

[LuS1fer]

roscobbc said:

Its your choice to Sorn the car and only do 1000 miles per year - but then its not exactly what most people describe as a 'classic' is it? - as you say the fairest method of taxation is to put it fuel - BUT we are already unfairly taxed on fuel compared with most other countries so that idea wouldn't work for any government. Many modern cars have such low emissions that they are effectively tax exempt anyway - so the governments real target would be more effective moving 'goalposts' to bring this potentially expanding group back in to taxation.

Actually, it's not.
I don't SORN and I have 3 kids so generally cannot use the car but don't mind bearing the cost of owning it. I tax it for the rare occasion we get a nice day and I have to be ready as it can be any time in this wet and depressing country.
MY only point was that if I have to pay it, so should everyone, there is no real distinction to be made.

I agree, however, that they should target the low emission cars. Zero and £30 cars could all be made £100 pa without affecting sales IMHO.
Most of these buyers wouldn't flinch at buying a games console or other such luxury so should contribute. I know it doesn't go directly on roads but it would certainly help in funding Councils.