Tax Exemption

[Nugget 4x4]

With the election looming How will you vote , Knowing that the conservatives will probablly reopen up the rolling 25 year tax exemption ruling that Labour FROZE in 1997 when they first came in to power as another stelth tax, if you own a 1973-1979 vehicle does'nt this need serious thought :?

[muddyweb]

ooh... there is a hatful of spiders.

I don't want to start a political discussion, so all I will say is that the party's policy on road tax is pretty low on my list of priorities for voting.

If you think that is the worst tax that there is, then you might want to look at some of the manifestos.

[V8MoneyPit]

Indeed, each year you pay thousands of Pounds in income tax, hundreds (or thousands) in Council Tax and heaven knows how much in VAT. £165 or whatever it is forms such a small part, is it really such an issue?

I have never understood why the tax exemption was brought in in the first place. With only about 250,000 people affected (if I remember the stats correctly), it was hardly an election winner.

[Garin]

Is it true that Labour are in the process of intruducing a yearly charge for a log book

[muddyweb]

I have never understood why the tax exemption was brought in in the first place. With only about 250,000 people affected (if I remember the stats correctly), it was hardly an election winner.

I suspect that it was a case of looking after the large museums and heritage centres, etc.  who have vehicles which get driven occasionally on public roads.

I have to be honest and say that I don't much agree with the rolling date anyway.   A 25 year old vehicle still uses as much road and has the same effect on the network as a new one.  I can understand the logic of exemption for 'classic' vehicles over a certain age as these will tend to be used much less.

It would all be much more appropriate if the money from the VED was used for the road network, but that has been an issue for much longer than this government has been in office.

[matthew]

It hasn't been a rolling date for about 8 years, and the youngest cars that qualify are now 32 years old.

Where I can see there being some sense in a cut off is around 1980 as cars become a lot more useable on modern roads at modern speeds. I doubt it would go to a rolling 25 years again anyway but a couple of years movement would be nice.

All of mine are exempt anyway :) except the modern runabout, so it wouldn't make much difference to me (although finding an exempt RR for laning would be easier).

[Richard-E]

I have never understood why the tax exemption was brought in in the first place. With only about 250,000 people affected (if I remember the stats correctly), it was hardly an election winner.

I suspect that it was a case of looking after the large museums and heritage centres, etc.  who have vehicles which get driven occasionally on public roads.

Yes, my understanding is that the VED exemption was introduced as an encouragement for people to keep running vehicles that could be regarded as part of our (motoring) heritage.

Scrapping the rolling date was was one of the umpteen stealth taxes introduced by the present government. In itself it may have seemed trivial to those not affected but as they say "many a mickle makes a muckle" (I think I know what that means)!

It may not be a vote catching thing, but I have a vested interested with my nearly original 32 year old RR! I missed the original deadline by three months and at the time the prospect of tax exemption was an incentive to renovate the motor.

[muddyweb]

Scrapping the rolling date was was one of the umpteen stealth taxes introduced by the present government. In itself it may have seemed trivial to those not affected but as they say "many a mickle makes a muckle" (I think I know what that means)!.

Stealth Tax ?

Just explain that to me ?  People paying with full knowledge to tax cars they previously had to tax....

[Nugget 4x4]

Although I have written this posting with a political slant please dont think im campaining for anyone I just find these stelth taxes hard to swallow. I have a 1973 Range Rover which in my veiw should be tax exempt, although I have got to research this as it is based on the build date not the first registered date, so I am going to contact the Heritage Museum at Gaydon who should be able to tell me when it left the factory so fingers crossed.

[Richard-E]

Scrapping the rolling date was was one of the umpteen stealth taxes introduced by the present government. In itself it may have seemed trivial to those not affected but as they say "many a mickle makes a muckle" (I think I know what that means)!.

Stealth Tax ?

Just explain that to me ?  People paying with full knowledge to tax cars they previously had to tax....

A "stealth tax" is a method for increasing tax revenue without increasing tax rates. Instead, the boundaries or threshholds are moved.

Another simple example is hairdressers. They used to operate as self employed so did not turnover more than the VAT breakpoint. However the rule was changed by Mr B, so that if several worked in the same premises they were regarded as one business, their combined turnover then incurred VAT and the prices to customers had to increase to cover this.

[muddyweb]

A "stealth tax" is a method for increasing tax revenue without increasing tax rates. Instead, the boundaries or threshholds are moved.

"Stealth Tax" is a stupid, hype-laden catchphrase coined by the tabloids to emote people into disliking it.

You drive a car on the road, you pay VED...  don't see how that is "stealthy" or a method for increasing tax revenue in any way other than one which previously existed, and has for many years.

It could be argued that in your hairdresser example, before the change in legislation, they were practising tax-avoidance.

[hobbit]

The only thing is with the older cars, some would not do a lot of mileage, hence the lower insurance rates for limited mileage.
As a lot of them are second vehicles, the first vehicle being the main high miler

[muddyweb]

That's right Kev... and as I said earlier I understand the thinking behind that.  But I don't agree that just because a vehicle is 25 years old it should be exempt from paying VED..  as Matthew says, a lot of 80's cars which would now qualify are quite usable, and I don't think they could be considered 'classics'.

You would need to have a limited mileage policy for tax exemption... but then that is a lot of added bureaucracy.

[Richard-E]

Although I have written this posting with a political slant please dont think im campaining for anyone I just find these stelth taxes hard to swallow. I have a 1973 Range Rover which in my veiw should be tax exempt, although I have got to research this as it is based on the build date not the first registered date, so I am going to contact the Heritage Museum at Gaydon who should be able to tell me when it left the factory so fingers crossed.

According to its registration document my RR was "used and/or registed overseas" until 1982 (V plate) although it was built in 1973. So back in 1997 I wrote, quoting the VIN No to Mr John Riley, Project Engineer, Traceability Systems, Land Rover, Lode Lane, Solihull, West Midlands, B92 8NW. Direct line: 0121 700 4806. He replied with detailed information, including a photocopy of the page in their daily despatch register, showing it was shipped out of the factory on 13 March 1973.

This original cut-off date for tax exemtion was 31 December 1972.

 :)

[V8MoneyPit]

Although I have written this posting with a political slant please dont think im campaining for anyone I just find these stelth taxes hard to swallow. I have a 1973 Range Rover which in my veiw should be tax exempt, although I have got to research this as it is based on the build date not the first registered date, so I am going to contact the Heritage Museum at Gaydon who should be able to tell me when it left the factory so fingers crossed.

As stated elsewhere, the official cut off date is end of 1972. However, I think you can still claim the exemption if it can be proven that it was built before Jan 31st 1973. Check with the DVLA for confirmation of this.

[landyman Ash]

Well if you dont get your tax excemption I know what your wife is going to do to you so all I'll say is fingers crossed for you mate  :D

Nice to see you posting!  I'll get that logo on here sooner or later!!   8)