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quoteWe’ve met with our local MP to raise our concerns about increases in Vehicle Excise Duty (VED) on new generation motorhomes and campervans.
New motorhomes with a Euro 6d/2 engine first registered after September 1st, 2019 are no longer subject to the Private Light Goods tax band. The VED payable is now calculated in the same way as a car, using the graduated VED system, and has seen first registration fees increase by up to 705% – from £265 per year to up to £2,135 in the first year. For those with a list price of £40,000 or above, this is followed by a fixed annual fee of £465 for five more years.
We’re concerned about the negative impact of this tax increase on the motorhome industry and have urged our local MP Holly Lynch (Labour, Halifax) to support the National Caravan Council’s “Fair Motorhome Tax” campaign and to call on Parliament to review the tax in the new budget.
“The motorhome sector employs many people in the Yorkshire region, from manufacturers to suppliers and dealerships – not to mention the camping sites and tourism destinations which attract motorhomers from across the UK,” said our Managing Director Ryan Wilby. “We have real concerns about the long-term, negative impact these tax increases could have on our industry, our future recruitment and our customers.
“We work closely with hundreds of UK motorhome dealerships who have experienced positive increases in motorhome sales over the last 10 years, which has led to the growth of our motorhome insurance scheme. Customer feedback indicates that this tax is causing confusion, could reduce demand, and be a barrier for those looking to experience the freedom of motorhome ownership.”
The majority of our motorhome policyholders only travel between 3,000 to 5,000 miles each year in their leisure vehicle.
Holly Lynch MP has already raised her concerns in Westminster and has visited Halifax-based dealership Richard Baldwin Motorhomes to hear of their worries about reduced sales and the impact on the local economy.
“I’m very aware of the negative impact on local businesses and the economy in Halifax that these massive increases in vehicle excise duty will have and so I’ve encouraged the Government to rethink its approach,” said Holly. “The tax hike on new motorhomes is creating a perverse incentive for people to buy motorhomes with older, dirtier engines whilst discouraging people from holidaying in the UK, instead using air travel. Neither of these approaches are good for the environment and so I have been working cross-party to urge the Government to arrive at a much fairer deal.”
The National Caravan Council (NCC) has been lobbying Parliament for many months and is calling on HM Treasury to reverse this tax in the forthcoming Budget process.
For more information about the Fair Motorhome Tax campaign visit www.fairmotorhometax.org.
To find out more about Caravan Guard and their great value, highly rated motorhome and campervan insurance visit www.caravanguard.co.uk.
Common questions about the new motorhome road tax
Will all new motorhomes first registered from the 1st September 2019 be taxed as cars?
No – only those motorhomes that have the new engines (Euro 6 d/2) installed and which are compliant with the Worldwide Harmonised Light Vehicle Test Procedure (WLTP).
Will the higher duty increase apply to campervans?
Yes, if a Euro 6d/2 specification engine is installed.
Will the higher duty apply to large motorhomes in excess of 3,500 kgs?
Yes, if a Euro 6d/2 specification engine is installed.
How do I know if my new motorhome has a Euro 6 d/2 engine?
Your motorhome dealership will be able to explain. Initially, many 2020 motorhomes will still carry the Euro 6 b/1 engine which is not affected by the new rules and will be taxed at the current rate.
If my new motorhome is one of those with a new, cleaner engine, what rate of tax will I have to pay?
From 1 September 2019, a motorhome with a Euro 6 d/2 Engine, will see the rate of Vehicle Excise Duty payable at first registration increase from £265 up to £2,135 for the first year only. In years two to six, the rate will move down to £465 per year for those motorhomes with a list price of £40,000 or more.
Spoke to DVLA today and have been told that good news is on the way ! They could not give exact details but have said they have reviewed the recent Vehicle Excise Duty (VED) and are about to change the fees paid on Motorhomes . Hope this is the case ! Steve Young RP Motorhomes
This potential increase in road tax is a dilemma to me on the one hand I can see the impact on me and the motorhomes and leisure industry but on the other hand I have eight grand children whose health and the environment are being affected by my hedonistic leisure pursuits so we might all have to forgo some our pleasures for their futures.
My Peugeot boxer was registered on the 6th September 19 and being converted now it will have motor caravan on documents but says just euro 6 engine and nothing else so how much tax will it be on it?
We’d suggest speaking to your convertor or dealership Robert as they will have the most up-to-date information.
Even Dick Turpin wore a mask when he robed you!!
Ok so if you are paying £40k+the new tax is small But its the principal. It will lead to many people declaring SORN numerous times per year, its easy and quick, this may overload dvla computor. Result counter productive.
Question,, do any MPs own and use a motor home??
No I didnt think so, ignorance is bliss!
This stopped us purchasing a replacement unit this year, as with the increase in costs and decrease it our mileage just not worth the change.