Farcical VED System

[Dustydog]

So we want to be green and do our bit. So why is the vehicle premium surcharge of £355 still fixed at £40k ? That means a plug in hybrid costing say £41k will incur a tax bill of £510 a year for the next five years. SWMBO six year old Kia C’eed 1.6 lean burn clean turbo diesel costs £30 for VED.
Surely HMG are not doing much to encourage going Green🤪

 

[woodsieboy]

The whole VED system is part of the disorganised lack of joined up thinking, my Santa Fe costs over £500 a year to tax but although it is a diesel it is exempt from all ULEZ charges as it is 'clean'
This being so why the rush to abandon diesels for 2030,why tax clean diesels on a random list price,why aren't clean diesels avaialble with a list price of £39999. My feeling is that we have a government in thrall to the green lobby,and like so many things in which the government nails its colours to a particular mast , they are on the hook and will not change course until they are forced to by either calamitous accident or public pressure.

 

[otherclive]

The whole VED system is part of the disorganised lack of joined up thinking, my Santa Fe costs over £500 a year to tax but although it is a diesel it is exempt from all ULEZ charges as it is 'clean'
This being so why the rush to abandon diesels for 2030,why tax clean diesels on a random list price,why aren't clean diesels avaialble with a list price of £39999. My feeling is that we have a government in thrall to the green lobby,and like so many things in which the government nails its colours to a particular mast , they are on the hook and will not change course until they are forced to by either calamitous accident or public pressure.

I was looking at a Nissan 370Z and that’s when I realised the inconsistency of the VED charges. A years difference in registration made an enormous difference to VED. From memory £500 to £165 figures approx from memory yet the same engine emissions level.

 

[Challenger]

My Mercedes E220 d Tourer costs me £30 annually . First registered on 14 March 2017, had it been about two weeks younger (after 1 April ) I would be paying £529 !

 

[Tobes]

The clean air zone constrains cars with poor particulate and NOx emissions, not low CO2.
The 40K limit on new registrations is a "luxury tax" and not related to emissions, (unless you buy a pure EV which is currently 0 VED).
The drive to EV in 2030 is driven party by emissions reductions (such as the clean air zone) but more by CO2 reduction, which is the basis for the rest of the VED system.

I agree the VED system needs an overhaul, though the criteria is still met. If you buy a hybrid that is less than 40K, its tax position is based solely on emissions.

They are encouraging the use of smaller (less expensive) cars, with lower emmisions, and an EV, which are known to be more expensive up front today.

 

[Raywood]

The VED system is aimed more at raising revenue than anything else despite what various chancellors have said. I think the £40,000 figure was to tax the rich, although it is now rather low and catches many more.

 

[otherclive]

The VED system is aimed more at raising revenue than anything else despite what various chancellors have said. I think the £40,000 figure was to tax the rich, although it is now rather low and catches many more.

I thought all tax sytems were designed to raise money but in this case there are also links to environmental objectives. Mine is £330 pa.