Road tax question.

[JAT69]

I read recently that any vehicle that costs over £40K gets stung by an extra £300ish per year charge on top of the normal road tax for the first few years after purchase.
How would that apply to a pre reg van that is then converted to a camper and its value is over £40K, as the van is then changed to a camper on the log book would you have to pay this extra robbery? Sorry if I'm being dense but I'm new to this camper van malarkey. Cheers.

 

[Pauly]

Changes are not important nor is price paid, its the list price of the vehicle from factory, not aware of anything else that affects it

 

[Van Adz]

@Pauly is correct regarding the factory RRP, but as you might expect the taxation class has a direct effect. Therefore any T6's that are Light Goods Vehicles (Panel vans and Kombis) and cost over £40k do not have the extra applied. If you have a Caravelle type van i.e. it is classed as a Car and over £40k then you will get stung. I believe this may be confusing with some of the Kombi models as some may be LGV's and some Cars depending on the load rating, but the main thing is to check the V5 to see what that says. As to your question, that is very interesting as it would appear the class is changing and not sure if they would retrospectively re-evaluate the price.

 

[Pauly]

That would be interesting if it was applied after reclassification
Lower tax and lower speed limits or higher tax and higher speed limits ?

 

[Sjacko20]

Hi, I have recently looked into this and the extra tax is not applied after reclassification but your road tax will decrease from £240 LGV amount to the new £140 band. A nice little tax dodge . Lower tax and higher speed limits.

 

[Roadrunner]

Not that it affects me now but is that the list price before the extras you but are added or do they come into it as well.

 

[Van Adz]

I believe it is with the extras.

 

[andys]

It includes extras that are fitted when you pick it up but not anything you add afterwards.

 

[Scruffy]

I don't get it. You can afford a £40k van but are worried about a few extra quid for tax? It's like my mate who complains about the cost of new tyres on his £120k Range Rover.

 

[Davenjo]

I definitely get why people want/need to understand this. You buy a car for £39,999 and you only pay £140 per year in VED (after the first year which is still based on emissions) but if you spend £40,000 you pay £450 per year after year 1 (£1550 extra over 5 years it applies). So if, say, you are considering adding LED lights and their cost, circa £1500 I think, takes you over the magic £40k they could, in effect, end up costing you nearer to £3000.

If my understanding is correct, the £40k threshold would be applied to the list price (plus delivered extras) of cars, e.g. California, but does not apply to commercial vehicles, e.g. panel van??

Emissions based VED rates were fairer and allowed people to make informed choices against graduated rates of taxation but as cars got more efficient the tax receipts got smaller, hence the scheme we now have. I'm not totally against paying more VED based on vehicle value but would prefer to see the rates based on a percentage of car price rather than this £40k precipice, i.e. in percentage terms this will hurt someone, say, putting their pension savings into buying a California a lot more than someone spending £500k on a supercar.

The situation is not too dissimilar to stamp duty whereby if you buy a house for £250,000 you get charged at 2% but if you buy one for £250,001 you get charged at 5%.

 

[bullock]

@Davenjo even stamp duty recently changed to a more palatable system whereby the percentage rates only apply to monies within that band, not the whole amount (like income tax)

 

[Davenjo]

@Davenjo even stamp duty recently changed to a more palatable system whereby the percentage rates only apply to monies within that band, not the whole amount (like income tax)

Thanks, I missed that change - that makes it a lot fairer than it was the last time I bought a house (nearly 20 years ago )