UK taxes on cars?

[Spotmatic]

It's not really affecting/ concerning me but i'm wondering how the UK cartax system works. In car ads people sell their car incl. tax? And when does a car become taxfree in The UK?

 

Over here you pay the tax for your car (if it's younger than 25 years, after that it's taxfree) per month/ quarter year/ year (your choice) and if you sell the car the taxmoney for the period you've allready paid for will be returnd.

 

Cheers,

 

 

 

Mark

[Fiesta Steve]

Very similar although we only get to choose 6 months or 1 year.

 

When we sell the car we can return the tax for a refund or leave it with the car.

 

We used to have the 25+ year thing until they knocked it on the head about 15 years ago, anything that was tax exempt when they knocked it on the head still is tax exempt.

[turbo-mike]

First thing the labour government did was scrap the rolling 25 year free car tax when they got into power in 97 so only cars built before 1973 are tax free, Then it gets complicated, It then depends on if the car is built before 2001 ans what engine size it is. If built after 2001 then it depends on the co it emits, You can tax your car for 6 or 12 months and if you lay your car up,you can get a refund on the remaining full months you have left, but if the car is not taxed you have to declare it SORN or you will get a fine.

Mike

[Spotmatic]

Thanks for the answers, sounds very simular to the Dutch system except for the possibility to sell the remaining tax. In The Netherlands you also have to declare your car sorn if it's not taxed.

 

The Dutch goverment has also scraped the taxfee rule for cars after 1987 .

 

Roadtaxes are not on emissions (yet) but on location and weight. If you buy a new car the goverment ads tax depending the emissions.

 

Pfeehww, i'm happy my OSF's are not taxed by emissons!

[Smudger105e]

First thing the labour government did was scrap the rolling 25 year free car tax when they got into power in 97 so only cars built before 1973 are tax free,

Mike

 

The 25 year exemption was never a rolling 25 year datum point, it was fixed at 1973 from day one.

[Mk2Jo]

Most people will sell their car to include the tax that is left on it as it is a good selling point

[stuartp]

First thing the labour government did was scrap the rolling 25 year free car tax when they got into power in 97 so only cars built before 1973 are tax free,

Mike

 

The 25 year exemption was never a rolling 25 year datum point, it was fixed at 1973 from day one.

 

not sure about that, my escort is june 73 and in with the paperwork is a letter from 97 when those buggers scrapped the scheme that tells the then owner that they will no longer be eligable for free road tax

 

it's been angrily screwed up and torn then stuck back together again - i can imagine how they felt

[aled]

First thing the labour government did was scrap the rolling 25 year free car tax when they got into power in 97 so only cars built before 1973 are tax free,

Mike

 

The 25 year exemption was never a rolling 25 year datum point, it was fixed at 1973 from day one.

 

Not sure about this either.....I was eagerly awaiting for my 1976 RS2000 to become 25 years old and they pulled the plug when it was 23 so I was well miffed

 

In fact I have just found out that it WAS actually a rolling program and the Governments response is here : http://www.number10.gov.uk/Page12025

[the shonkster]

i tried to find out when my car / shell was built at ford give them a ring ask for archive department they can look it up but it cost me £1 hope this helps my car was registered sept 73 built june so still mist it worth trying tho

[stuartp]

In fact I have just found out that it WAS actually a rolling program and the Governments response is here : http://www.number10.gov.uk/Page12025

 

so they cling to their usual but in this case, completely and utterly so wrong that surely every sane person can see, justification of helping the environment by trying to make us buy new cars instead of keeping ones that have already been built running

 

excuse my french but... what a load of the round ones

[stuartp]

hairy spheres!

 

ha ha

 

almost makes me want to try all the sweary words i know to see what it changes them to

[turbo-mike]

i tried to find out when my car / shell was built at ford give them a ring ask for archive department they can look it up but it cost me £1 hope this helps my car was registered sept 73 built june so still mist it worth trying tho

 

Some cars registered in 73 are tax free but the car had to be built before december 31 1972. so save your pound a yours was built in june 73.

mike

[Smudger105e]

I am confused now, as the petition states "Details of Petition:

 

"Currently cars have to have been constructed before a set date - the 1st January 1973 to be eligible for historic car tax exemption. We the undersigned would like the date to be move as it has been fixed for a number of years. A number of cars which were built in British factories are becoming few and far between and would like the Government to help preserve these cars by offering and extension on the current exemption date.", which does not indicate a rolling date at all...

 

Still if I'm wrong, I'm wrong!

[Vista]

Definitely wrong Smudger.

 

It was a 25 year rolling program introduced by the conservatives in the early 90's and the rolling part of it was promptly axed by Mr Brown in 1998 (hence the 73 cut off date) in his first budget after they came to power. I was gutted as I'd just finished a resto on my late 73 GXL Capri and was expecting it to be tax free. I've been voting conservative ever since

[aled]

Just got this Government response to the most recent petition (In case you don't want to read it says no extension to the tax-free cars beyond 1973 )

 

Wednesday 20 January 2010

Save-old-cars - epetition response

 

We received a petition asking:

 

“We the undersigned petition the Prime Minister to help save Britain’s classic cars from the scrappage incentive, by re-introducing free road-fund licence for historic vehicles aged 25 years and older.”

Details of Petition:

“Amid the global economic crisis, the classic car market is a rare British success story, but the new scrappage incentive threatens to damage this by paying people to dispose of perfectly serviceable retro and classic cars. This will lead to jobs being lost in the retro classic car industries; meanwhile the vast majority of this scrappage money will go toward subsidising foreign car companies. Given that the most polluting stage of a car’s life is its manufacture, we therefore believe that it is a horrible waste to encourage retro and classic cars to be scrapped in favour of newer models with shorter operational lives. A properly maintained old car not only puts out significantly less emissions (including C02) than is permissible by law, it also prevents the need for other, more wasteful, cars to be produced and consumed. We therefore urge the protection of cherished, well-maintained cars by re-instigating the rolling 25-year road fund licence exemption for historic vehicles. This will help protect our motoring heritage and its manufacturing industries in the face of recent legislation.”

· Read the petition

· Petitions homepage

 

Read the Government’s response

 

The Government understands the arguments surrounding the Vehicle Excise Duty (VED) exemption for historic cars made in this e-petition, and answered a similar petition in February last year – see http://www.number10.gov.uk/Page14590 – and in June 2007 – see http://www.number10.gov.uk/Page12025.

 

As set out in the answers to earlier petitions, VED helps to support the Government’s wider policy objectives by providing a valuable source of revenue from which important public services may be funded. However, the Government is also committed to using VED as a means of bringing environmental factors into consideration when people choose to take ownership of a car.

 

In taking the 1998 Budget decision to freeze the rolling 25-year VED exemption for historic cars at 1973, the Government was considering the consistency of its environmental signal in VED policy. The Government has sought to bring an environmental focus to VED, through the introduction of CO2-based rates for cars registered from March 2001, and the application on graduated engine size-based rates for cars registered between January 1973 and March 2001. The exemption for cars built prior to 1973 should therefore be viewed as an exceptional concession, and the Government does not believe there to be a sufficiently compelling argument for extending it on environmental grounds.

 

The scrappage scheme was announced as part of the Budget on 22 April 2009 as a temporary measure to support the motor trades sector. The scheme is deliberately time-limited and cost capped (due to end by February 2010 or when funding is exhausted, which ever happens first), to ensure that the benefits of the scheme are balanced with the needs of other sectors including maintenance and repair businesses.

 

Further Information

 

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Tags: Classic Cars

[stuartp]

same old hirsute balls

 

looking back over the previous petitions it looks like they get one every year and trot out the same rubbish

 

ah well maybe they'll be gone soon and the next lot can be petitioned too

[FredTransit]

I am particularly bitter, as all but one of our fleet would have been tax exempt next year.

Back to UK tax, I will add only the registered keeper can recieve the rfunded raod tax, if you buy a car and decide to cash in any tax that comes with it, you have to make sure your name is on the V5 before sending it back. Otherwise it will go to the previous registered keeper.

[Guest DELETED]

DELETED

[FredTransit]

I remember the 4 month tax. I doubt they would ever do a 1 month, cos of the terrible astronimical costs of some bint at the post office using a biro. They should do 4 months, in these times of recession it would be better for them to get something off car fans (for the show season) than nothing (leaving it in the garage)

[Grizzley Dell]

3 months would be cool