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Tax hike for new motorhomes from 1 September
Anyone considering buying a brand-new motorhome may be faced with a larger-than-expected tax bill from 1 September 2019, as changes for how Vehicle Excise Duty (VED) is calculated come into effect.
From this date, all new light passenger and commercial vehicles must comply with strict emissions limits. These limits will determine the vehicle's rate of VED, commonly referred to as road tax or car tax, but which is more accurately a pollution tax as it’s now based on emissions.
To give some background and context for this change, as part of ongoing efforts to ensure cleaner motor vehicles, from 1 September EU regulation 2018/1832 requires all light commercial vehicles to provide CO2 – or carbon dioxide – emissions figures for the whole vehicle.
To date, motorhomes that are built in multiple stages by different companies – for example, Fiat may provide the base vehicle and running gear, Al-Ko may provide the rear chassis element and Swift may build the caravan body or habitation area – have not been required to provide CO2 emissions figures so have been taxed as Private Light Goods vehicles (PLG) at a rate between £165 and £265 per year.
However, from 1 September, brand new motorhomes fitted with the latest Euro 6D/2 engines will be treated as cars for VED purposes and therefore the base vehicle manufacturer will be required to provide a representative CO2 emissions figure on its Certificate of Conformity.
This figure will ensure the vehicle is subject to the standard car VED emission tables to determine the rate that will need to be paid. For example, a motorhome with more than 255g/km CO2 emissions would be required to pay £2135 in the first year and then £145 each year after.
The Club supports measures to limit emissions and accepts that campers, caravanners and motorhomers need to play a part in this. However, the Club feels VED should be proportionate to the amount of use and mileage of a typical motorhome, compared with cars and commercial vans.
The Club and other organisations are fighting to amend this tax hike for motorhomes on the grounds that a motorhome is not a car, so should not be taxed as a car. Club members can support this position and have their say by writing to their local MP and signing this online petition to amend how VED is applied to brand new motorhomes fitted with Euro 6D/2 engines. 100,000 signatures would force a debate in Parliament on the subject.
Members who have placed an order for a brand-new motorhome fitted with the latest Euro 6D/2 engine, with its first registration taking place on or after 1 September 2019, will likely be affected by this increase and should discuss VED costs with their dealer at point of ordering a new motorhome.
The Club’s Technical Team is on hand to advise and can be contacted on 024 7647 5256 or techtalk@thefriendlyclub.co.uk.
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Rob Ganley | 20 August 2019