Pre Budget Report...
 

...looks like there may be some (temporary) relief for us V6 owners. :)

Great news. Just bought 1 year tax though to avoid the increase.

Think they realise that the tax increases were unfair and thanks to a lot of campaining have lost their nerve. I know Porsche were putting a lot of pressure on the government to scrap the increase.

Don't you feel sorry for all of those people who went out and bought Blue Motions and the like to get free car tax. Looks like they will still have to pay and drive a crap car.

This is only a temporary reprieve as things aren't going well economy wise... once it all picks up again thet VED increase will be back on the cards i would imagine.

sounds like things might be looking up a bit. The drop in VAT should make quite an impact

It will on my income, I am registered at flat rate ( I invoise 17.5% but only pass on 11% instead of doing monthly VAT returns) It means on the months when I buy lots, I loose out on VAT I cannot claim back.

Any way, I'll be loosing 2.5% of my top line. Damned

boo! Why cant they reduce again the rate they put up so I dont have to pay over £200 for 6months road tax next month!

If the VED stays the same (as now) and the VAT is reduced to 15% it'll save about £500 a year on VED and Petrol.

Reducing VAT makes no sense to me what so ever. Firstly 2.5% is nothing really on regular/not so regular expenses. Add to this the cost of implementation of the prices reductions on the ground in shops which will I would imagine make the overall price reduction on the shop floor around 1.5%-1.75%.

Taking the company I work for and the one I previously worked for I know how much it costs in terms of staffing to implement price changes of a few hundred products not to mention the thousands of product lines in the shop.

Its a tax incentive to encourage people to buy as you only get the saving when you buy something. If you save your money you will not see any advantage.

Yeh I see the logic but if you buy something at £100 the new price next monday will be (assuming you get the whole 2.5% decrease) will be £97.87.

Even if i was two buy a 180 on a forecourt at £5000 today the new price would only be 4893.62

to offset the effects of the temporary reduction in VAT, increasing alcohol and
tobacco duties, maintaining these increases after December 2009 to support fiscal
consolidation; and following a fall in pump prices of over 20 pence per litre from
their summer peaks, a two pence per litre increase in fuel duty from 1 December
2008; :(

So the ZS will fall into band 'K' if i'm reading that table correctly...

spot on mate.same as it is know band wise,IE it aint in the new car tax band

Shroon

I just had this email to me by the people at the government... seesm like they are sticking to this one




The 2008 Pre-Budget Report confirmed the Government’s commitment to environmental reform of vehicle excise duty (VED) for post-2001 cars, as announced at the 2008 Budget. This reform includes increasing the number of VED bands from seven to 13 in 2009, and introducing differential first-year rates in 2010.

However, to reduce financial pressures on motorists during the current economic downturn, the Pre-Budget Report also announced that no motorist will face a tax increase greater than £5 in 2009, and then £30 in 2010. In 2010, many cars will see tax cuts of up to £30. When these more significant rate changes are introduced in 2010, a majority of motorists in post-2001 VED will either pay less or the same as in 2009, in real terms. Drivers of cars purchased between 1 March 2001 and 23 March 2006 that emit over 225g/km will maintain their exemption from the top rate of VED.

These reforms apply to all post-2001 cars. (Cars registered before 2001 – which are a third of the vehicles on the road – are not subject to CO2-based VED as data on their emissions is not available). There is nothing unusual or unprecedented about applying new VED rates to existing cars and this is not retrospective taxation. Increases in car tax rates have affected existing cars since the tax was introduced in 1910.

To find out how much tax you will pay in 2009 first find the CO2 emissions of your car by either:

• checking the V5C registration document that is filled in whenever a new or second-hand car is purchased; or
• entering details relating to the car into the DVLA vehicle inquiry website at http://www.direct.gov.uk/taxdisc

Then, read the CO2 emissions figure against the tax rates published at:

• http://www.direct.gov.uk/en/Motoring...axYourVehicle; or
• http://www.hm-treasury.gov.uk/tax_ve...xcise_duty.htm

The aim of CO2-based VED is to ensure that the tax paid per vehicle reflects the emissions from that vehicle. It is only fair that existing cars should also pay according to how they pollute, and that the overall VED system is consistent and transparent.

Indeed, only applying new rates to new cars would cause problems by overcomplicating the VED system, and denting the environmental signal of VED by creating multiple different systems in the second-hand market. This could result in the potential for motorists to pay more tax for a cleaner car, confusing consumers about the environmental impact of their choice of used car. This would undo the benefits that the Government brought to the VED system by placing it on a CO2 basis in the first place – i.e. providing a greater incentive for drivers choosing a lower-carbon version of car within their preferred class, whether purchasing in the new or second-hand market.

To ensure that new VED rates and bands are clearly understood by motorists, the Department for Transport has worked with the Low Carbon Vehicle Partnership to update the fuel economy label for new vehicles, and is continuing to work with industry to develop a fuel economy label for the second-hand car market. Budget 2009 also announces changes to the VED rules on refunds, six-month licences and imported vehicles during the first year of vehicle licensing, from April 2010, as a consequence of the introduction of first-year rates, as well as general changes to the treatment of imported vehicles.

The important line for most of is
What concerns me is the word "purchased".
In the previous table it said "registered".
I bought my Dec 2001 MGZS180 in January 2007, will it now fall into the top band again as it was purchased after 23/3/6?
It would be typical of this goverment to change this around again.

I think purchased will actually be 'Initially purchased' or 'First purchased'... as in the first date in the logbook / V5.