Forthcoming changes - Car Excise Duty

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Wed 15 Jan 2014 16:28
Forthcoming changes - Car Excise Duty - Dwight Van Driver

You all will be aware that HMG are to do away with paper Excise Licences for motor vehicles later this year probably Oct 2014 as far as I can gather and rely on electronics ANPR.

This is contained in the Finanace Bill 2014 and there is more that I was not aware of and came across whilst trawling this massive tomb yet I gather to be brought into force all may find interesting

. Paragraphs (3), (4), (7) and (9)

amend sections 7A, 10, 29 and 31A respectively of

VERA so that it will no longer be

possible to transfer the benefit of a vehicle licence when

there is a change of registered keeper. As

a consequence of this, where there is a new

registered keeper he/she will be obliged to take

out a new vehicle licence when the vehicle to

which the vehicle licence relates is transfe

rred to him/her. The reason for now preventing

vehicle licences being transferred

from registered keeper to regi

stered keeper is to avoid a

new registered keeper unknowingly keeping an

unlicensed vehicle. For example, in the

absence of a paper licence a vehicle may be

purchased supposedly with the benefit of a

vehicle licence. The new keeper would believe

that the vehicle was licensed, but the former

keeper could apply for a refund of VED wit

hout the knowledge of the new keeper resulting

on the new keeper having an unlicensed vehicle.

FINANCE BILL 2014 PAYMENT BY INSTALMENT:

BACKGROUND NOTE

9. These provisions enable the Driver and Ve

hicle Licensing Agency (DVLA) to collect

VED via direct debit monthly s

hould motorists wish to pay by

direct debit. Currently VED

can be paid by cash, cheque and credit or de

bit cards but none of these payment methods

allow the cost of VED to be spread.

10. Motorists will be able to pay VED via dire

ct debit in an annual, one-off payment or

12 equal monthly payments. Paying for VED by dire

ct debit does not alter the fact that a new

licence may only be taken out provided the customer has a valid MOT in place.

11. At present, paying for a six-month vehicl

e licence costs 55per cen

t of the applicable

annual rate for that vehicle. This will reduce to

52.5per cent if the payment is made by direct

debit. Where a 12-month licence is paid by mont

hly instalments, the cost of the vehicle

licence will be 105per cent of

the applicable annual rate for that vehicle.

DVD

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Wed 15 Jan 2014 17:04
Forthcoming changes - Car Excise Duty - RT

Not being able to transfer the VED on change of owner does have the advantage for the rest of us that the new owner has to have their own insurance in place to buy new VED.

But otherwise a nice little earner as the old owner only gets a refund from the 1st of the next month while the new owner pays VED from the 1st of the current month - so DVLA gets an extra month's VED every time a car is sold.

Edited by RT on 15/01/2014 at 17:05

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Wed 15 Jan 2014 17:22
Forthcoming changes - Car Excise Duty - Collos25

Any government who says they are making changes to help the populus are liars they only make changes if there is something in it for them.

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Wed 15 Jan 2014 17:27
Forthcoming changes - Car Excise Duty - skidpan

It will make very little difference (if any) to law abiding citizens. When they buy a car they will pay the RFL, most do since the dealer will have surrendered the tax if there was any on the car when they took it in PX. When they sell a car they will have to surrender the RFL which sensible people do anyway.

To see it as a huge conspiracy is totally daft.

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Wed 15 Jan 2014 19:06
Forthcoming changes - Car Excise Duty - Collos25

I believe in the UK a dealer is not and has not been allowed for some time to recover car tax on vehicles traded in to his business.

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Wed 15 Jan 2014 20:18
Forthcoming changes - Car Excise Duty - gordonbennet

I believe in the UK a dealer is not and has not been allowed for some time to recover car tax on vehicles traded in to his business.

Thats very interesting Collos, i've noticed cars recently for sale from traders with often long periods of VED still valid, so thats why...and there was me thinking it was simply a sales tactic...;)

Thanks for the write up in simpler terms for us DVD.

Edited by gordonbennet on 15/01/2014 at 20:19

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Wed 15 Jan 2014 22:16
Forthcoming changes - Car Excise Duty - csgmart

One unintended consequence of this may be that the new owner of the vehicle 'forgets' to inform DVLA of the change of ownership so as to take advantage of any remaining tax (should the current keeper not apply for a refund).

It makes buying a privately owned car more difficult too. If I were to buy a car this evening and drive it this evening in theory I would be driving an un taxed car because the tax on it was not taken out by the new keeper of the vehicle (me). I would have to faf around and apply for VED before I could drive (I recognise the new process of applying online would be easy and instant but still something that some / many might not do immediately).

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Fri 17 Jan 2014 14:50
Forthcoming changes - Car Excise Duty - tommy t1968

no i don't think that would be the case. the ved would still be active on the car untill change of ownership has completed this takes up to 4 weeks. thats why you get that little green slip which you can use only once to tax your car

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