Why new VED means you should buy a Motorhome now
Read our Simpsons short guide to everything you need to know about recent changes to vehicle excise duty (VED) for motorhomes
If you’re looking to buy a new motorhome, you should be aware that the government has changed the classification of motorhomes (effective from 1 September 2019) which will see a huge increase of around 700% to the cost of vehicle excise duty (VED) for all motorhomes with the new Euro 6D/2 engines.
With this change, there’s never been a better time to buy a Euro 6B/1 engine motorhome, as you could save thousands on the ‘on road price’ of any 2018/9 model.
What is vehicle excise duty or VED?
Vehicle excise duty, sometimes referred to as ‘road tax’ or ‘road fund licence’ is the annual vehicle tax that is levied as an excise duty and which must be paid for most types of vehicles which are used on public roads in the UK. VED is enforced by the DVLA.
What has changed with VED for motorhomes?
Currently, most newly registered motorhomes pay ‘Light goods vehicles (TC39)’ rates of £260/year. This is because unlike cars, motorhomes are built or modified in stages and the manufacturer cannot provide an emissions figure for the vehicle. Other vehicles pay VED based on CO2 emissions.
From 1 September 2019, however, EU regulation means all new sales of ‘Light Commercial Vehicles’ will be subject to type approval and must provide a vehicle emissions figure.
Put simply, your 2020 model motorhome fitted with a new Euro 6D/2 engine will be treated like a car for VED purposes and as you’ll see in the diagram below, this means a big increase to what you’ll pay.
Image: NCC (National Caravan Council) showing how the new VED bands are calculated from 1 September 2019.
How much is vehicle excise duty being raised?
The VED on new motorhomes fitted with the new Euro 6D/2 engines will jump from £265 to £2,135, which is a 705% increase – plus there will be significantly higher ongoing yearly tax costs for a further five years.
How can I avoid this increase in VED?
If you buy a 2018/9 model from our forecourt, we currently have stock of motorhomes that do not have the new Euro 6D/2 engines. The increase in VED will apply to 2020 model motorhomes fitted with the new Euro 6D/2 engines.
What if I already have a motorhome?
Your dealership will be able to answer any questions. Most new motorhomes will still carry the Euro 6B/1 engine which is not affected by the new rules and will be taxed at the current rate. Only 2020 model motorhomes fitted with the new Euro 6D/2 engines will be affected by the VED changes.
What if I want to buy a new motorhome?
It’s not too late to save thousands on the cost of your new motorhome. Simpsons Motorhomes is East Anglia’s largest motorhome dealer and major stockist of all leading brands such as Auto-Sleeper, Auto-Trail, Chausson, Elddis, Rapido and Fusion as well as an extensive range of pre-loved used motorhomes located on the Norfolk coast.
Come and talk to us, check out our 2018/9 models on the forecourt in Great Yarmouth or online here – hurry while stocks last.
Read our news article here: https://simpsonsmotorhomes.co.uk/news/road-fund-tax-increase-for-motorhomes-with-new-generation-engines
You can find out more on the UK Parliament website: https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8639#fullreport
What can I do about this change to VED?
The National Caravan Council (NCC) has asked people to lobby MPs and have launched a petition asking the Government to reclassify motorhomes as commercial vehicles for the purpose of VED. http://www.fairmotorhometax.org/