[hangover recovery]

Hi All

I've attached an article I've scanned from this Septembers issue of LRO International.

Read it and weep.

Best hang on to your DS, it may well have very strong residual values over the next few years, don't think for one minute you're going to save any dosh by opting for the Inginum engine, you may well end up opting for a basic model....

PS. the upper attachment is a zoomed in section of the whole page article, for those of you like me who need reading glasses.

 

[Triple7]

OMG.

Looks like I need to buy a new LR registered 30 March '17.

Taxation hikes just create behavioural changes....

 

[Moose]

Yes early 2017 cars will be popular

 

[BobbyBox]

A slightly misleading article as it assumes the value band includes options, which it doesn't as it is based on the list price of the vehicle (e.g. you can have up to the base price for a DS HSE Auto is £39k before this applies, load up the options as you'd be fine). Only HSE Black and above would incur the £310 annual supplement.
Take a vehicle purchased this year, an Ingenium 180 with 139CO2's and you'd pay £140 VED now and next year, and the same in 2017 as the standard rate would apply of £140.
Buy a new DS in 2017 and you'd pay £160 in the first year and £140 in each subsequent year. Choose a trim of HSE* or below and you'll avoid the £310 supplement.
*This assumes the base price does not increase pushing this trim level over the supplement threshold.

George's paper is here:https://www.gov.uk/government/publications/vehicle-excise-duty/vehicle-excise-duty

 

[Triple7]

True, but the Chancellors old friend that is Fiscal Drag will be along. Inflation will be on the way up again next year & i bet the trigger price bands won't rise by CPI. Soon enough all cars will be above £40K. Kerr-Ching!

 

[BobbyBox]

True, but the Chancellors old friend that is Fiscal Drag will be along. Inflation will be on the way up again next year & i bet the trigger price bands won't rise by CPI. Soon enough all cars will be above £40K. Kerr-Ching!

True :roll:
Down to JLR to price their products accordingly...

 

[Groova]

HMRC include factory/dealer fitted extras as part of their "list price" calculation for the purpose of working out the taxable benefit for a company car.

I see no reason why the DVLA would do anything different in determining the list price of a car being over £40K. If DVLA uses the base price excluding extras as its starting point then it stands to lose out on revenue and the system will be become open to abuse, heaven forbid.

A nasty, punitive tax increase.

 

[ccomley]

Politicians revealed as idiots once more

Initially the graded road tax was designed to encourage us to buy cars with lower emissions, and to encourage car manufs to design better to reduce emissions. It has done both. But the problem with that is, the income from the tax is reduced as more of us end up in lower-emmitting cars.

So they now see it as a "loss of income" rather than "successful moves to reduce emissions". SO the change.

On the other hand, the tax fades out after a few years now so it's a "first few year" surcharge, and the really big hits are only on the really expensive cars. If you can afford 90k for full-monty RR, then £2k for tax discs isn't so much at just over 2%. So its a move which taxes the rich and, as such, quite a neat one. (Given that the roads DO need repairing ad someone has to pay taxes to pay for that,)

 

[philn]

HMRC include factory/dealer fitted extras as part of their "list price" calculation for the purpose of working out the taxable benefit for a company car.

I see no reason why the DVLA would do anything different in determining the list price of a car being over £40K. If DVLA uses the base price excluding extras as its starting point then it stands to lose out on revenue and the system will be become open to abuse, heaven forbid.

A nasty, punitive tax increase.

Still open to abuse as a lot of the extras are dealer fit, just order them after the car is delivered.

 

[Moose]

HMRC include factory/dealer fitted extras as part of their "list price" calculation for the purpose of working out the taxable benefit for a company car.

I see no reason why the DVLA would do anything different in determining the list price of a car being over £40K. If DVLA uses the base price excluding extras as its starting point then it stands to lose out on revenue and the system will be become open to abuse, heaven forbid.

A nasty, punitive tax increase.

Still open to abuse as a lot of the extras are dealer fit, just order them after the car is delivered.

You will find items like seats and wheels will be dealer fit options :twisted: :lol: :lol:

 

[philn]

You forgot the engine moose.

 

[BobbyBox]

HMRC include factory/dealer fitted extras as part of their "list price" calculation for the purpose of working out the taxable benefit for a company car.

I see no reason why the DVLA would do anything different in determining the list price of a car being over £40K. If DVLA uses the base price excluding extras as its starting point then it stands to lose out on revenue and the system will be become open to abuse, heaven forbid.

A nasty, punitive tax increase.

That would require the dealer/purchaser to declare the invoice total to HMRC when taxing the vehicle (HMRC rarely calculate anything, they expect you to do that!). Otherwise the VED would have to be set via some sort of industry wide list price database for each new vehicle sold.
As previously said, canny buyers would spec options after the vehicle was taxed...

 

[Groova]

HMRC include factory/dealer fitted extras as part of their "list price" calculation for the purpose of working out the taxable benefit for a company car.

I see no reason why the DVLA would do anything different in determining the list price of a car being over £40K. If DVLA uses the base price excluding extras as its starting point then it stands to lose out on revenue and the system will be become open to abuse, heaven forbid.

A nasty, punitive tax increase.

That would require the dealer/purchaser to declare the invoice total to HMRC when taxing the vehicle (HMRC rarely calculate anything, they expect you to do that!). Otherwise the VED would have to be set via some sort of industry wide list price database for each new vehicle sold.
As previously said, canny buyers would spec options after the vehicle was taxed...

It wouldn't surprise me if the dealer had to make a disclosure of the invoice price to DVLA. Some options won't always be able to be dealer fitted, not sure I would want them putting the engines in...

 

[BobbyBox]

I think we'll have to await the official HMRC definition of "list price".

 

[Broono2]

The list price already includes a tax called VAT!. If the Chancellor wants to cast his net wider and catch more vehicles that makers price at £39995, then just push the rate of VAT up, or reintroduce the dreaded "car tax" again.