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.