Member Article

Lloyd Newcastle on how to beat tax increases

Lloyd Newcastle is urging drivers to be aware of car tax changes coming into force on April 1, which could mean motorists pay hundreds of pounds more in Vehicle Excise Duty (VED) every year.

The retailer, on Barrack Road, is holding a special Beat the Tax event on Friday (March 24).

From next month, almost all new cars will be subject to annual tax band price revisions, which were first announced by former Chancellor George Osborne two years ago and are now being pushed forward by his successor Philip Hammond.

It could mean those who drive the most polluting models paying out as much as £2,000 in the first year of owning a new car, registered after April 1.

The changes will affect 17-plate cars registered from April. Only those who opt for lower and mid-range pure electric and hydrogen cars which emit no CO2 at all will not be affected as these models will continue to be free to tax.

However, for other cars, it is likely that motorists will find tax is more expensive, rather than their bill going down.

For those opting for luxury cars, with a price tag of more than £40,000, there will be surcharges of hundreds of pounds to pay for five years after their first five year.

Lloyd Newcastle Head of Business Michelle Caveney said: “Registering a new car before April 1 could offer significant savings, but many people are still unaware of the changes set to come in within days. We’d urge anyone thinking about buying a new car to move now to beat the tax increases.”

Lloyd has put together a guide to cut through the confusion for customers, which shows registering a new BMW or MINI before April 1 could offer savings of up to £1,640 on BMW or £820 on MINI over the next six years.

Michelle added: “Given Mr Hammond’s Budget has created a furore around such issues as self employment, the announced increase in car tax seems to have gone unnoticed by many but it could have a big impact on costs of running a new vehicle. For those in the market for a new car, it makes sense to look at whether bringing their purchase forward could mean cost savings.”

The key changes:

* The First Year Rates (FYRs) of Vehicle Excise Duty (VED) will vary according to the C02 emissions of the vehicle. This is on a sliding scale from £0 for zero emission cars up to £2,000 for vehicles with emissions of over 255g/km of CO2.

* A subsequent flat standard rate of £140 per year will apply to all cars (except zero emission cars for which the standard rate will continue to be £0)

* Cars with a list price of over £40,000 will pay an additional premium supplement of £310 per year on the standard rate for the first five years in which a standard rate is paid.

* Cars first registered before April 1, 2017 will continue to pay under the current VED system.

Lloyd Newcastle is holding a special event on Friday to help motorists who would be hit hardest with tax increases to beat the clock. The retailer will have a range of models at the £40,000 and above price bracket ready to take home immediately, meaning they will not be subject to imminent tax hikes.

Get in touch with the team at Lloyd Newcastle on 0191 2617366  for advice about how the new tax changes could affect you if purchasing a new BMW or MINI.

This was posted in Bdaily's Members' News section by Fiona Brook .