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THE BUDGET - CAR TAX INCREASE

Posted: 12 Mar 2008, 17:19
by mattc
Does anyone have an MOT emissions slip handy? In the budget there's a new top band for the most polluting vehicles that emit more than 255g of carbon dioxide per kilometre. Does that affect us?

And while I'm here, do you get lower emissions burning veg oil?

Posted: 12 Mar 2008, 17:38
by The Reverend Pimp Daddy
if it's anything like the last few budgets.....it only applies to cars registered after a certain date.....Not to ours I don't think

Posted: 12 Mar 2008, 18:14
by steve8090
Fuel Duty

The fuel duty increases planned for the 1st April will now take place on 1st October 2008.
At this time duty on petrol / petrol will rise by 2p per litre to 52.35p per litre and LPG will rise by 2.135p per litre to 10.38p per litre.


The Government also confirmed that rebated oils duty increases will be deferred until 1 October 2008, when they will rise in proportion to main road fuel duties. These rates will also rise by the same proportion as main road fuel duties in the subsequent two years.


As previously announced, on 1st April 2009 duty on petrol / diesel will rise by 1.84p per litre to 54.19p per litre and LPG by 2.03p per litre to 12.41p per litre


The Chancellor announced that on 1st April 2010 fuel duty rates will increase by .5p per litre plus inflation. As a result the specific duty rate will not be known until then.


As regards LPG the Chancellor announced that the existing regime will continue of the duty differential between petrol / diesel and LPG reducing by 1p per litre per year. Importantly, this represents stability of policy towards LPG. HMRC have yet to calculate the actual differential which will apply (this has been significantly less than 1p as demonstrated above) and we are pressing the Treasury for this figure. We will advise as soon as it is known.



VED

Budget 2008 announces reform of the vehicle excise duty (VED) structure. From 2009, VED will be restructured with new bands, based on carbon dioxide so that people gain financially by choosing the car with the best environmental performance in a given group. The financial difference between the most and least polluting cars will increase, so that making a small change in car emissions has a greater financial impact. From 2010, there will be a new higher first-year rate based on carbon dioxide emissions, to influence purchasing choices. Specific changes include:


•• six new VED bands from 2009-10 – including a new top band (band M) for the most polluting cars that emit more than 255g CO2 per km;

•• reducing the standard rate of VED, in 2009-10, for all new and existing cars that emit 150g of CO2 per km or less, and increasing the standard rate of VED on the most polluting cars to £425;

•• from 2010-11, extending the zero rate of VED, during the first year of ownership, to all new cars that emit 130g CO2 per km or less – the EU proposed target for average new car emissions in 2012;

•• holding the first-year rate for all new cars that emit between 131 and 160g CO2 per km equal to the standard rate in 2010-11;

•• introducing for the most polluting cars a first-year rate of £950 in 2010-11;

•• providing a £15 or £20 discount for alternatively fuelled cars in 2009-10, and £10 in 2010-11; and aligning the alternative fuel and standard rates of VED in 2011.



This last clause is disappointing for LPG as the VED bands do not recognise the reduced carbon emissions following conversion but LPG cars were able to register for the alternative fuel discount.

Posted: 13 Mar 2008, 21:27
by Popeye- Doyle
Steve.

Thanks for providing that information. :ok