Government Scraps New Motorhome Tax
In the recent budget, The Chancellor, Rishi Sunak, confirmed that the rise in Vehicle Excise Duty (VED), which was imposed on new motorhomes, has been reversed with immediate effect. All new motorhomes registered from 12 March 2020 onwards will be taxed under the previous system, which ended at the end of August 2019.
During those six-and-a-half months, buyers of new motorhomes fitted with the new generation, greener, more energy efficient engines were hit with a tax increase of up to 705%. This meant buyers of most new motorhomes and campervans first registered between 1 September 2019 and 12 March 2020 paid up to £2,135 in the first year instead of just £265.
Now, (from 12 March 2020) buyers of almost all new motorhomes will pay a flat VED rate of £265 in year one.
The NCC is currently discussing with the DVLA over the detail but it’s understood that new motorhomes powered by the latest Euro 6D/2 engines that have had the graduated VED band already applied to them will continue to pay VED in year two at £145 plus the luxury vehicle tax of £320 (if the list price at purchase was over £40,000). This makes a total of £465 for years two to six and then £145 every year after that.
Because the Chancellor’s decision was effectively immediately, it means thousands of buyers who ordered their new motorhomes last year to be delivered and registered in time for the traditional start of the season in April will now have an extra £1,870 in their pockets.
For more information about the tax changes, please speak to us today on 01539 823659.
Click here to view the range of motorhomes available at Kendal Caravans