Car manufacturers and the iPhone generation

632 More

Earning the right to be successful

611 More

Knowledge is power

717 More

Selling cars – it’s all about timing

1,007 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

Car tax hikes delayed but petrol duty up

Car tax hikes delayed in the Pre-Budget Report, but motorists will not benefit from the VAT cut as petrol duty is raised by 2p. Chancellor Alistair Darling said that a wider range of car tax bands reflecting fuel efficiency would still be introduced, but all rates would go up by a maximum of just £5 next year.

The most polluting cars will then only see a maximum rise of £30 in 2010, however no guarantees of what will happen to car tax in 2011 and beyond have been given.

But motorists have had hopes dashed that a VAT cut from 17.5% to 15% would bring cheaper petrol, with the Chancellor saying this would be offset by a rise in fuel duty.

The Pre-Budget Report has announced that the 2p per litre increase in fuel duty, originally planned for April 2008 but delayed due to high petrol prices, will now be introduced 1 December 2008.

Motorists will then see a further hike in fuel duty of 1.84p per litre on 1 April 2009.

The 13 road tax bands announced in the Budget earlier this year, would replace the existing A to G categories from 2009/10.

The new top band M would have a £425 annual charge from April 2009, compared to £400 this year and £300 in 2007/2008. The top band will now only pay £405 next year.

Although the car tax changes were aimed at hitting gas guzzlers, many mid-range family cars, such as a Ford Mondeo, would have seen road tax rise from £210 this year to £300 next year and £310 in 2010. This will now be limited to £215 and £245 in 2009 and 2010, repectively.

Under Mr Darling’s proposals this would be limited to £215 from next April, and £240 in 2010. However, the Chancellor gave no indication as to whether rises would be limited beyond this.

The new car showroom tax will not be delayed with the most polluting cars facing a £950 charge from April.

Cars that emit over 225g/km, but were registered between 1 March 2001 and 23 March 2006, will be moved into the new band K in 2009 and stay there in 2010.

The Chancellor said recent falls in petrol prices meant that he would not pass on the VAT cut to motorist. However, while petrol and diesel prices have come down over the past month they are still relatively high compared to the price of oil, which has tumbled below $50 a barrel.

Under the original road tax proposals, cars will be divided into 13 groups depending on carbon dioxide emissions. Annual road tax would be charged at £440 for the top band in 2009 and £455 the year after.

Thisismoney

Nov 24, 2008In51der
  • Luxury used cars doing well despite fuel price hikes
  • Road Fund Licence
  • Pre-budget report 2009 motoring round-up
  • £5 gallon looms again as petrol rises 26% in 12 months
  • Government u-turn on car tax
  • Ministers see off duty challenge
  • MTI - The ugly car top 10New car sales - the uneasy truth
    Comments: 1
    1. jake
      14 years ago

      a LITTLE HELP BUT NOT ENOUGH ITS TYPICAL THAT THIS GOVERNEMNT HAS JUST PAID IT LIP SERVICE,WHILE THE MOTOR TRADE BUCKLES UNDER THE STRAIN AND PEOPLE LOSE THEIR JOBS DAILY,YOU HAVE TO ASK IS THIS ANYWHERE NEAR ENOUGH TO HELP STIMULATE THE MARKET,WHAT WE COULD HAVE DONE WITH IS NO RISES TO VED UNTIL THE INDUSTRY WAS BACK ON ITS FEET AND RELIEF IN FUEL DUTY,THOUGH AT LEAST SOMETHING IS BETTER THAN NOTHING TIME WILL TELL IF WE SEE ANY IMPROVEMENT IN CAR SALES,I DOUBT IT THOUGH!!!

    In51der

    Motor Trade Insider - Bridging the gap between the customer and the Motor Trade

    14 years ago Consumer, News, Tax & Insurance20% vat, budget, car tax, fuel duty, showroom tax, taxes64
    Most viewed
    Top 100 UK Dealer Groups
    39,748 views
    The car sales process and the “9 point plan”
    11,813 views
    webuyanycar review – They will buy any car but beware of the asterisk
    6,194 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments

    Auto Transport

    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes