Dreaded tax question (again)

[Santa79]

Hi
So I've found a Cali I am very interested in buying. It's 2017 plate petrol and I know that it's £475 a year until 2022... That much is clear to me.
But does anyone know what it goes down to after that at all? From what I can gather from the government website it goes down to £150 a year... But this seems a bit too good to be true to me, so I'm guessing it is....

 

[WelshGas]

Hi
So I've found a Cali I am very interested in buying. It's 2017 plate petrol and I know that it's £475 a year until 2022... That much is clear to me.
But does anyone know what it goes down to after that at all? From what I can gather from the government website it goes down to £150 a year... But this seems a bit too good to be true to me, so I'm guessing it is....

No. That is correct. VED drops significantly 5 yrs after 1st Registration.

 

[SusiBus]

Yes correct, crazy as it seems, after 5-years for any California registered as an MPV, it becomes a win-win situation. It was going to be different for those registered as motorhomes. As it was intended that their VED was going to be based on their emissions, but this has just recently been put on hold. So will remain at £270 for the time being.

 

[Alan Andrews]

Hi
So I've found a Cali I am very interested in buying. It's 2017 plate petrol and I know that it's £475 a year until 2022... That much is clear to me.
But does anyone know what it goes down to after that at all? From what I can gather from the government website it goes down to £150 a year... But this seems a bit too good to be true to me, so I'm guessing it is....

I bought a 2017 March Ocean. Tax on this is £245 each year.

It was in April 2017 that the government started to introduce the variable tax derived from the factory book price of the vehicle.

I deliberately hunted out the March 2017 Cali to keep the VED down.

 

[Lightning]

Yes correct, crazy as it seems, after 5-years for any California registered as an MPV, it becomes a win-win situation. It was going to be different for those registered as motorhomes. As it was intended that their VED was going to be based on their emissions, but this has just recently been put on hold. So will remain at £270 for the time being.

That’s not correct I think, mine is a motor-caravan on 67 plate, and it reduces from £450 to £150 after 5 years, this was a luxury vehicle surcharge. I don’t think those registered as MPV got either the sur-charge or get any reduction after 5 years but their rate is higher than the old rate after the air charge ends on those, and when registrations reverted to motor-caravan later, this was again without the surcharge or subsequent reduction. The tax on these vans is not consistent.

 

[Jabberwocky]

That’s not correct I think, mine is a motor-caravan on 67 plate, and it reduces from £450 to £150 after 5 years, this was a luxury vehicle surcharge. I don’t think those registered as MPV got either the sur-charge or get any reduction after 5 years but their rate is higher than the old rate after the air charge ends on those, and when registrations reverted to motor-caravan later, this was again without the surcharge or subsequent reduction. The tax on these vans is not consistent.

This inconsistency/muddle creates huge unfairness in the system. My Cali is a July 2019 and I paid £1850 as a First VED and then for the next five years I will be paying £475 p.a. (inc £325 lux tax). Before I get to "normal" tax levels.

 

[Lightning]

This inconsistency/muddle creates huge unfairness in the system. My Cali is a July 2019 and I paid £1850 as a First VED and then for the next five years I will be paying £475 p.a. (inc £325 lux tax). Before I get to "normal" tax levels.

Agreed. On the bright side I see it as another good reason to keep my Cali forever, so get full benefit from the reduction.
Is yours an MPV or a Motor Caravan?

 

[Jabberwocky]

Agreed. On the bright side I see it as another good reason to keep my Cali forever, so get full benefit from the reduction.
Is yours an MPV or a Motor Caravan?

MPV.
Edit. My old Cali (New Feb 2017) was a Motor Caravan.

 

[Lightning]

MPV.

There is no clear justification for all these discrepancies. Somebody has been incompetent.

 

[Jabberwocky]

There is no clear justification for all these discrepancies. Somebody has been incompetent.

........or nobbled, sorry lobbied by interested, sorry again, biased or those with, sorry again, self interest.

 

[Lightning]

........or nobbled, sorry lobbied by interested, sorry again, biased or those with, sorry again, self interest.

Hanlon's razor is a principle or rule of thumb that states, "never attribute to malice that which is adequately explained by stupidity".

 

[SusiBus]

I think the important thing is that the V5 shows the Taxation class as " PRIVATE/LIGHT GOODS (PLG), or PRIVATE/HEAVY GOODS (PHG) for Grand Californias.Those caught up in the VW/DVLA debacle, there is light at the end of the tunnel, after 5-years you do get your VED reduced.

 

[Jabberwocky]

V5 declaration?
Feb 2017 - Diesel Car
Jul 2019 - Diesel Car

 

[Scoobz1]

They will probably change it by then anyway - i.e. increase it after 5/6 years !

 

[B J G]

I bought a 2017 March Ocean. Tax on this is £245 each year.

It was in April 2017 that the government started to introduce the variable tax derived from the factory book price of the vehicle.

I deliberately hunted out the March 2017 Cali to keep the VED down.

Like you I'm on a lower rate, pre April '17 than those post April '17, who will after the 5th year then pay rate, approx £100 per year less than we do. take some years to balance the difference out.

It'll probably all shoot up on the emissions pretext and make E vehicles more sellable. (don't mean to start a side thread so no response required)

 

[Santa79]

Like you a a lower rate until the after the 5th year then we pay a higher rate, approx £100 per year.

It'll probably all shoot up on the emissions pretext and make E vehicles more sellable. (don't mean to start a side thread so no response required)

Yeah but then you don't buy a transporter (new or 35 years old) if you're concerned with the cost

 

[orbital]

Personally, anyone who can pay over £40k for a vehicle is fair game for a hefty tax (me included). All of those schools, hospitals, defence systems, infrastructure etc don’t come cheap. If you don’t like taxes, then a third world country awaits. And as they say, taxes are the price you pay for a peaceful society.

 

[Bellcrew]

Personally, anyone who can pay over £40k for a vehicle is fair game for a hefty tax (me included). All of those schools, hospitals, defence systems, infrastructure etc don’t come cheap. If you don’t like taxes, then a third world country awaits. And as they say, taxes are the price you pay for a peaceful society.

LOUIS XIV’S FINANCE minister, Jean-Baptiste Colbert, famously declared that “the art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.”
If you don't hiss a bit they will take every last penny of your income, history is your friend when there is any doubt about that truism.