At VM Insurance we always keep a close eye on UK Vehicle tax rate-changes (which usually gets updated in www.gov.uk) to ensure we know exactly what is happening with motorhomes.
We have noticed the UK Government has begun rolling out new tax rates for certain vehicles – including some motorhomes.
It is useful for brokers who have customers that insure motorhomes with them to know how these changes could affect their customers. Vehicles that produce a higher amount of CO2 are to be charged more than those which are considered environmentally friendly.
Whilst ‘greener’ automobiles will benefit from relaxed rates.
Will the new tax affect the existing motorhome tax payer?
The answer here is probably not.
Only vehicles that were registered at the DVLA from April 1st 2017 are liable to pay these new tax rates.
So basically, unless someone buys a brand-new motorhome or are planning on buying one, then existing motorhome tax payer will continue to pay the same rate. In addition, it’s also worth pointing out that not all motorhomes are taxed this way.
They’re only included in this if they meet the following requirements:
- It is in the M1SP category
- Its CO2 emissions are on the ‘type approval certificate
The New Tax Rates
Here’s what you need to know:
The price your customers will pay on their first year of tax depends on the vehicle’s CO2 emissions.
|CO2 emissions (g/km)||Petrol (TC48) and diesel cars (TC49)||Alternative fuel cars (TC59)|
|1 – 50||£10||£0|
|51 – 75||£25||£15|
|76 – 90||£100||£90|
|91 – 100||£120||£110|
|101 – 110||£140||£130|
|111 – 130||£160||£150|
|131 – 150||£200||£190|
|151 – 170||£500||£490|
|171 – 190||£800||£790|
|191 – 225||£1,200||£1,190|
|226 – 255||£1,700||£1,690|
And for the second year (and every year after that), it depends on the type of vehicle.
|Type of Vehicle||Amount Taxed|
|Petrol or Diesel||£140|
|Zero CO2 Emissions||£0|
Additional Costs for More Expensive Vehicles
Things get a little more expensive if the list price of a new vehicle (the RRP before any special offers or discounts) is more than £40,000.
After the initial year of paying tax based on CO2 emissions, motorhome owners must pay the ‘type of vehicle tax’ and an additional £310 per year for the next five years.
When those five years are up, you go back to just paying the standard rate (£140, £130, or £0, depending on vehicle type).
If you have any questions, or your customers express concern, then you can direct them to the Government’s official page for more information