Classic Car Tax Changes - Budget 2013

Discussion in 'General Discussion' started by Baysearcher, Mar 20, 2013.

  1. ive used this and all seems as is except under the colour part it says Remarks: Westfalia :confused: but mine is a devon and still has its original devon conversion sticker in it :confused:??
  2. I thought I'd posted my efforts on this here already, if I'm repeating myself, please ignore.

    Some people raised concerns on the Type 3 & 4 Club recently about the promised extension to Historic Vehicles VED, as it wasn't anywhere within the Finance Bill 2014, due to become the Finance Act 2014, before the next Budget.

    Things that were are the abolishment of a requirement to display VED paper discs on the Windscreen from 1st October 2014 (apparently this costs too much and with ANPR largely pointless anyway), and the introduction of paying VED by Direct Debits from 1st October 2014, with a 5% surcharge on the price of VED, which actually works out cheaper than the 10% surcharge applied to buying six months VED in advance. The downside being the 14 days grace period is also abolished, the second you're out of tax you get fined £80. I therefore wrote to the All Party Parliamentary Historic Vehicles Group

    'Dear Sir/Madam,

    Although everyone is heartened at the news within the 2013 Budget, that Historic Vehicles Exemption to VED will be extended by 12 months to include vehicles built before 1st January 1974, which includes myself with two 1973 Volkswagen Classic Cars, I am a little concerned that the Government has forgotten this Budget pledge.

    The Finance Bill 2014 includes two elements that are related to private vehicles VED, under Vehicle Excise Duty: administrative changes.

    First the proposed abandonment of the requirement to display VED on a private vehicle, and secondly the introduction of monthly Direct Debit payments with a 5% surcharge.

    Whilst both are welcomed, there is no mention of an extension to Historic Vehicles Exemption for pre-1974 Classic Cars.

    How exactly will this change be facilitated if no legislation has been drafted to allow it to take place?

    If you are able to point me to the relevant legislation that will facilitate such an extension, I would very much appreciate it, thank you.

    Yours, somewhat concerned,

    Wayne Faulkner'

    I later got this response from the APPHVG.

    'Dear Mr Faulkner,

    Thank you for your email.

    Sir Greg campaigned for this change and he will not let the Government forget their commitment.

    Because this is a tax rates and bands related matter no draft legislation was issued as part of the publication of the draft Finance Bill 2014 on 10 December 2013. The Government will publish the legislation when the final Finance Bill 2014 is laid in Parliament shortly after Budget 2014.

    I hope that this reassures you.

    Matthew Thomas'

    Basically, the Chancellor isn't required to put changes in bands and rates for VED in the Finance Bill, as this is something he has the power to change at his Will, anytime he likes, but he does have to confirm this in writing to the DVLA. The DVLA will only operate within the established Legislation, and within the notified Bands and Rates for VED, they cannot comment upon any promises that the Chancellor makes in Parliament, only what they receive in writing from him.

    So lets await his announcement, which is due immediately after the Finance Bill becomes the Finance Act 2014, a few weeks before the 2014 Budget.

    In the meantime, there is no rush to prove your Build Date until April 2014, and even then the established procedure requires you submit your application through a club listed on the DVLA's V765 List. Until you need to spend any hard earned, don't, as in many cases you won't need a Birth Certificate from Germany or elsewhere, just the supporting evidence provided by the clubs on V765.

    Hope that helps everyone.
  3. Looks like it was even better than hoped, 40 year rolling :chewie:

    Right, now just need to sort out changing Nellie to historic tax on 1st April.... have got my birth certificate ready :)
  4. rickyrooo1

    rickyrooo1 Hanging round like a bad smell

    There's now 3 threads with this on.... and i still gotta wait 5 years...... thats £1250 at least before it's free..... and labour will probably scrap it again like they did in 1997.
  5. The bands and rates change is immediate and does not require legislation within the Finance Act 2014, its a right of any Chancellor, since 1997, to extend the Historic Vehicles Exemption. The rolling 40 year exemption will require legislation within the Finance Bill 2014, which starts a process after the Budget, becoming the Finance Act 2015 by the next Budget.

    So the rolling exemption has been announced, it just has to survive the Finance Select Committee, which includes MPs from all parties to get their hands on it and argue the toss against. All sounds good, but don't count your chickens just yet...oh... and WOOOOOO HOOOOOO...GET IN...ok I'm calm again.
  6. Well we're 1974 bus so looking good for next year (already bought this years tax disc...)
    CSI_Will likes this.
  7. Lord Charles

    Lord Charles Day's Away Mod

    Does anyone know if this also applied to MOTs last I read was that pre 1960 vehicles were MOT exempt will this be rolling date too?
  8. Interesting question but I'm sure that is completely unrelated. Its nothing to do with the budget. I'm not sure it's a good idea either but no doubt a discussion for another thread. :)
  9. I'm in the same boat, my bus will be tax exempt next year :)

Share This Page