30 outandaboutlive.co.ukSeptember 2019
NEWS & EVENTS
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NCC lobbies to remove tax increase
for new motorhomes
The in dustry body, the National Caravan Council (NCC),
is lobb ying govern ment tohave motorhomes excluded
from a tax change that could add up to£4,460 inadditional
registration tax and Vehicl e Excise Duty (VED) over a
periodof si x years.
The c hangesmean that al l new motorhomes registered
after September1, which are powered by engines meeting
the latest Euro 6d/2 emission standards, will fall in to a
higher VED band. Motorhomes powered by previous-
generation engines will not be affected.
Motorhomes are currently taxed as private light goods
commercial vehicl es (3,500kg andbelow), or private heavy
goods commercial vehicl es (over 3,500kg). Howev er, fr om
September1, they will be taxed as cars, not commercial
vehicl es, andthere is a muchhigher tax system for cars.
This means the first VED for a new motorhome will
increasefrom £265to £2,135 – a 705% increa se – plus
owners wil l be liable for anannual char ge for the following
five years of £465 (up fr om £265).
Currently, motorhomes do not haveto havetheir CO 2
emission levels printed on the type approval registration
paperwork. Howev er, fr om 1 September, new Europe-wide
regulation s require the CO 2 emissions fornew vans andcars
to be stated on the approval paperwork.
This means that, despite a motorhome being built on a
commercial vehicl e base, all new motorhomes registered
with DVLA will, for the purposesof VED, move out
of the commercial vehicl e tax bands and into car
tax bands.
“The new emission regulations are important,
and it is right that the taxation system
encourages new carowners to choose cleaner,
more-efficient engines from the numerous
rangesof engines a nd models available, ”
explainedthe NCC’s Director General, John
Lally. “As motorhomes havecommercial
engines, new owners do not have this choice;
motorhomes will now attract the highes t
car tax, even if the cleanest, most-efficient engine is
installed. Motorhome owners do not havethe luxury of
choice, as commercial base vehicl es offer ve ry limited
engine option s. Motorhome manufactur ers havelittl e or no
control over the engines installed in the base vehicl es, or
their emissions output.
He went on topoint outthat the primary use of a
motorhome isfor over night holiday accommodation and
it spends most ofits time on a ca mpsite, rather than on the
road network.
“So, on grounds of usage, it sh ould not be comparedwith
a caror even a van/truck that will both do signifi cantly
more mileag e andgenerate many times more pollution
each year. Under the HM Treasury VED framework, a
delivery van with the samecommercial base vehicl e
and engine travelling 35,000 miles a year will continue
to be taxed at £265,whereas amotorhome travelling
between 2,000to 4,000miles in the year wil l be taxed at
£2,135,” said John.
“Motorhomes, unlike cars, areused for holidaysand
short breaks – used for perhaps just 30 day s per year –
with many owners being retired.Motorhome owners
are typically thrifty andlive simply to fund their passion
to travel. They see motorhomes as a more affo rdable
way of holidaying in the UK/EU, choosing touring over
flying to the Mediterranean or acrui se. For the younger
motorhomer, the vehicl e often facilitates fami ly holidays,
where children canexperience the ou tdoors.
Both groupssupport British tourism –
and thereb y UK jobs.”
A Treasury spokes person
said the c hangesare still set
to include motorhomes,
although he added that the
Treasury will continue
to review the syst em:
“To in centivise dr ivers
to make the greenest
choices, a new, robust
CO 2 emissions test
procedure is being
introduced. Motorhomes
will move into a different
VED category as a result, bu t
we recognise the concerns of the sector, a nd
keep all taxes under review.”
The changes will not affect motorhomes registered prior
to September1 andwill only im pact anymodels thereafter
that are powered by the new-generation(Euro 6d/2)engines.