As you may be aware DVLA have announced new rates of Vehicle Excise Duty, commonly known as ‘Road Tax’, from 01 April 2017. Most new vehicles registered in the UK after this date will be taxed in the first year at a rate based on the vehicle’s emissions, from the second year a flat rate will be applied. The good news is we in BFG are exempt UK Road Tax, therefore the vast majority of vehicles being returned to the UK will only pay the current rate (those first registered in the UK before 01 April 2017) or the second year flat (those registered in the UK after 01 April 2017).
What are the new rates?
Cars registered after 01 April 2017 will pay a one off tax charge for the first year, this will be based on the vehicles CO2 emissions and will range from £0 to £2000.
From the second year onwards the CO2 emissions become irrelevant and a flat rate is applied, which for the vast majority of vehicles will be £140.
What will this mean to me in BFG?
Customers returning vehicles at the year point that have been registered in the UK after 01 April 2017 will pay the flat rate plus the additional rate (see below) if applicable.
A customer returning to the UK before the first year point has been reached whose vehicle will be classed as New Means of Transport (NMT) will pay the flat rate plus the additional rate if applicable.
Any vehicle originally registered on the export scheme will never pay the First Year rates (emission based) as they’ve already had their first year licence as exempt.
The only time customers will pay the First Year rates (emission based) is if they are importing a vehicle into the UK that has never been registered with DVLA (BFG being the first registration authority) which still meets HMRC criteria as NMT, that being less than 6 months old or travelled less than 6000 Km.
Is it true that some vehicles will be charged an additional rate?
Yes if you purchase a vehicle with a list price of more than £40000 (UK list price) then after the first year you will pay an additional rate of £310 for the next five years, so for the majority of such vehicles you can expect to pay in the second year £140 flat rate plus £310 additional rate. The additional rate is payable for five years after which time you’ll pay the standard flat rate only.
What is the list price?
The list price is the retail price published by the manufacturer and includes any options fitted by the manufacturer; it is set before any discounts or incentives and may not be the price the customer pays.
I’m taking my car back in May, what will I pay?
So long as your car was originally registered in the UK before 01 April 2017 then you will remain on the current rate of tax. The new tax rates only apply to new vehicles registered after that date.
Where can I find more information?
Your local VLO Office can help, also the BFG VLO Helpdesk on Civ 0521 9254 2637, Mil 94881 2637 and finally DVLA have produced a helpful video that can be accessed at:-https://www.youtube.com/embed/_a3xLXuEdx0