Tuesday, 8 October 2019
Motorhome Anti-Tax Campaign
Motorhome road tax increased by 705%
From 1 September 2019, the tax payable on first registration of a new motorhome with a WLTP Euro 6D/2 engine was increased from £265 up to £2,135.
Join the lobby campaign NOW!
How to get involved in the campaign
As a result of a technicality under new EU regulations, new motorhomes with a WLTP Euro 6D/2 engine are no longer subject to a commercial vehicle tax band in the UK. Instead, they are, for the purposes of Vehicle Excise Duty (VED), now taxed as a car. This will have a devastating effect on the motorhome industry. There will be a substantial fall in British manufacturing, a collapse in demand for new products, and associated job losses throughout the supply chain.
There are three different ways to add your support to the campaign to help reclassify motorhomes as commercial vehicles and get a fair tax for new motorhomes.
UK motorhomes are built using a commercial base vehicle, fitted with a commercial engine. These base vehicles are constructed by commercial base vehicle manufacturers (incomplete vehicle) and are then converted into motorhomes by UK-based motorhome manufacturers.
Motorhomes have for many years been taxed as private light goods commercial vehicles (PLG- 3,500 kg and below), or private heavy goods commercial vehicles (PHG – over 3,500kg).
As a result of a technicality under new EU regulations, new motorhomes with a WLTP Euro 6D/2 engine are no longer subject to a commercial vehicle tax band - Private/Light Goods (PLG/PHG) - when they are first registered. Instead, they are, for the purposes of Vehicle Excise Duty (VED), now taxed as a car.
This reclassification means the registration tax for a new motorhome with a WLTP Euro 6D/2 engine has increased from £265 (PLG rate) up to £2,135 – a 705% increase - plus there is significant higher ongoing yearly tax costs for a further five years.
As motorhomes have commercial engines, new owners do not have the same wide choice of car models and because of their unique classification, motorhomes will now attract the highest car tax, even if the cleanest most efficient engine is installed
Motorhomes, unlike cars, are used for holidays and short breaks – on average 3,000 miles per year. Whereas a light commercial vehicle can do circa 12,800 miles per year, using the same base vehicle emitting the same CO2 per mile and will be subject to a lower rate in VED.
The UK motorhome industry is asking for an urgent minor amendment to the Finance Bill to reclassify motorhomes as commercial vehicles for VED and avoid a catastrophic reduction in sales, a drop off in production, impact upon UK staycations and associated job losses throughout the supply chain.
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