Tax changes in budget

Nicked from t' budget;

-------------------- Analysis from the King Review suggests that there is a wide range of environmental performance within a particular group of cars (such as family saloons or hatchbacks). Drivers could reduce carbon dioxide emissions and fuel bills by up to 25 per cent by choosing the most efficient vehicle in its group. The review also concluded that over the long-term the technology exists to reduce the average carbon dioxide emission of new cars to 100g per km by 2020.

In order to support this target, and strengthen the environmental incentive to develop and purchase fuel-efficient cars, 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 pounds;
  • 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 pounds in 2010-11; and
  • providing a 15 pounds or 20 pounds 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.

--------------------

So much for the reports of a 2,000 quid tax rate on "gas-guzzling 4x4s"!

Reply to
Ian Rawlings
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Presumably the existing bands remain (possibly inflation adjusted). And these 6 "new bands" apply only to vehicles registered from 2009?

I see that the 2p/l fuel duty increase due this/next month has been postponed to October.

Reply to
Dave Liquorice

Nearly a £1000 bill for many though !!!!!!

Reply to
Andy

Sure but only on new cars and for the first year, and given that apparently the average family car costs 16K then most of those will be fuel-efficient, which is fine, it'll only be those who really want a particular car that will be able to stomach the extra cost. So the herd will be pushed towards more fuel efficient cars while those who want something special will pay a little more of a premium. The only downside really is that there'll be less interesting hardware hitting the second-hand market for cheapskates like me!

Reply to
Ian Rawlings

Nope

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Table A.8a shows that the new bands apply to all cars registered after 1 Mar 2001. Be careful reading the table - the right-hand half is expanded, so you can't just read straight across to see how much you'll be paying.

The anomaly is now even greater between identical cars made just either side of the magic date - e.g. an Astra 1.7 diesel estate, 132g/km, will cost £200 per year in VED if it's Feb 2001 (Table A8b), but £110 if it's Mar 2001. There will be even greater anomalies, I expect. I couldn't find any reference to Historic Vehicle rates, but, unless they've abolished the zero rate, £200 for a 1973 Landy, against 0 for a 1972 one will encourage even more creative reconstruction.

Reply to
Autolycus

Shift the decimal place one right for me. You're obviously earning too much to get a decent working tax credit and/or don't have any kids.

Reply to
Dave Liquorice

Sadly us sensible childless lot have to subsidise the sprog droppers, and we have to pay for our own pensions too! Humbug, time to emigrate, oops, what am I saying!

Reply to
Ian Rawlings

We've only got two and that isn't enough to properly replace us when we go, even though they are one of each.

So do I.

Reply to
Dave Liquorice

No sprogs, no inheritance :)

Reply to
Allen

On or around Wed, 12 Mar 2008 23:19:02 +0000 (GMT), "Dave Liquorice" enlightened us thusly:

There are something around 2 billion more people on the planet than is, I suspect, sustainable long-term already. We don't actually need population growth.

American Billions, mind, not real ones. It's still a lot of people, all farting and using up the oil and generally buggering up the world.

Reply to
Austin Shackles

Quite right Bar Stweards. My May 2001 registered TD5 DII @ 262g/km is:

2008/9 - =A3210 2009/10 - =A3440 20010/11 - =A3455

=A3245 increase next year or roughly 3 tanks of fuel at todays prices, l= ess by then.

Reply to
Dave Liquorice

Only because the vast majority of those 2bn will have way more than 2 kids. If they only had 2 the population would crash, not fall.

I also interpreted "sprog droppers" to mean those with >3 kids from several fathers (or mothers) living on benefits. Like the teenage lad with

6 kids, fathered from the age of 13, all with different girls and with no intention of providing support for any of them. If there is a case for state castration...

Agreed. Even with two kids I'm not contributing to poulation growth. Even in this country with good health care and child hood survival rates you have to have over 2 kids to maintain the population size. For most of the world half a dozen kids is required but that is falling all the time but unfortunately old habits die hard.

Reply to
Dave Liquorice

Population growth is highest in the poorest countries, and the wealthier a country gets the fewer children it has, which is the reverse of what you might think is sensible, but I suppose that you need more people for a country to develop sufficiently for it to afford less people ;-)

However getting back to the environmental impact, my carbon footprint ends with me, whereas those who have kids it extends way past their lifetime which is a semi-serious point I use to prod those who rabbit on about climate change while bringing up their kids!

Reply to
Ian Rawlings

And if for example you are buying a top of the range RR is an extra £500 road tax on the first year really going to put you off?

If it were every year then the value in the 2nd hand market would drop significantly and that might just deter people from buying in the first place.

Reply to
hugh

Indeed, hence my comment about the average family car being the only sector that'll really be affected, and arguably that's as it should be given that it's the one that does the damage. The majority of the damage is done by the majority of the people after all. Niche cars are an irrelevance other than to the green-eyed monster (which is dressed up in environmental clothes).

As far as I'm concerned the most environmentally friendly car is the one you already have due to the costs of building cars but discouraging people from buying new cars isn't something any government is ever going to do.

Reply to
Ian Rawlings

On or around Thu, 13 Mar 2008 11:01:14 +0000 (GMT), "Dave Liquorice" enlightened us thusly:

And is that going to persuade you to go out and buy a ford fiesta?

...thought not.

Reply to
Austin Shackles

On or around Thu, 13 Mar 2008 11:24:31 +0000 (GMT), "Dave Liquorice" enlightened us thusly:

balls. There are getting on for 6 billion world population. If they all only have 1 sprog on average worldwide, then it'd still take about 20 years to get much of a drop in population.

now, they're not helping, I grant you. Although really, education would be better than castration.

yebbut, that's the point. we don't need to maintain population size, we could well do with halving it, worldwide. And, indeed, in this country.

Reply to
Austin Shackles

In message , Austin Shackles writes

Quiet. The population level has been determined roughly at that necessary to support the economic activity prior to the huge gains in efficiency brought about by the silicon chip and the demise of our heavy industries.

We ought to have a town twinning project - and obliterate one of the twins as we don't need them both. e.g. Cardiff and Swansea, Portsmouth and Southampton, Derby and Nottingham, Manchester and , well just Manchester.

Reply to
hugh

With which sentiment as the owner of a 1998 Defender V8 I wholeheartedly concur.

Reply to
hugh

Err... Could I ask for London to be added to that list please? But I'd keep Manchester. :-)

Reply to
John Williamson

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