details of the Spring Budget 2017 measures announced are available on the
HM Treasury website
released following the Chancellor's statement to Parliament.
Treasury Spring Budget 2017 document. More
Spring Budget 2017 documents. More
Budget on Wednesday 8th March 2017|
The Spring Budget 2017 made
in the House of Commons by the Chancellor of the Exchequer, Philip Hammond, on
Wednesday 8th March 2017 provided an
update on the Governments plans for the economy based on the latest forecasts
from the Office for Budget Responsibility. These forecasts are published alongside
the Budget Statement. Full details of those announcements are available on the
HM Treasury website
The Chancellor announced in the Autumn Statement 2016 that
the Government will move to a single fiscal event each year so the Spring Budget
2017 will be the last Budget held during springtime. The OBR will continue to
make two forecasts a year. The Finance Bill will follow the Spring Budget 2017.
the Chancellor's statement to Parliament we have our usual a prompt report on
the few measures announced which will be of interest to the classic motoring enthusiast.
extracts from the HM Treasury document. More
for classic car enthusiasts |
Duty - the fuel duty rise expected in 2017 has been cancelled.That
means no rise in fuel duty for the 7th successive year. The average motorist will
save £130 from this fuel duty increase freeze.
tax - the tax rate will rise from the current 10% to 12% from June 2017. In
the Budget 2016 in March the rate was increased from 9.5% to 10% so a combined
increase of 2.5% in 2016!
Excise Duty rates and bands - no change to the VED rates other than the RPI
increases announced in the Budget last year. VED rates have increased in line
with inflation since 2010. More
rates for cars registered before March 2001
The RPI increases have lifted
the rates for engine size up to 1549cc by £5 to £150 for 2017/2018
and by £10 to £245 for over 1549cc like an RV8.
Excise Duty classic vehicle exemption - no change to the rolling 40 year VED
exemption announced at the Budget 2014.
our previous reports on:|
Budget statement in November 2016. More
statement in March 2016. More
of the Spring Budget 2017
See our preview. More
House of Commons website.
40 year VED exemption guide|
VED exemption guide
is a typical increase in insurance premium tax likely to be in 2017?|
our worked example. More
our recent news item on the emissions zones
in London. More
VED weighting for diesel engined vehicles?|
commented "I had expected a shift in the VED rates for new cars with an
increased weighting on diesel engined cars but so far as I can see VED rates
continue to be based on CO2 emissions (g/km) and they have simply had the RPI
increases applied and then set out in the HMRC Policy Paper. I think the Government
seems to have decided to tackle air quality by leaving it to local authorities
to introduce emissions zones and congestion charges rather than try and tackle
that through differential VED rates. It's also a good way of avoiding any public
annoyance with Government through raised taxation (VED) but playing on the virtue
of passing the power to deal with such matters to local government. Personally
I feel that is the right way to handle the diesel engine and particulates problem."
Hunt Cooke responded saying "according to a report in the Times, in his
budget speech yesterday, Philip Hammond failed to address the issue of air pollution
or diesel emissions head on, prompting criticism from environmental groups. However,
documents published by the Treasury suggested that it would be tackled in the
Autumn Budget, to be delivered by the end of the year. The Government has
already committed to publishing an air-quality plan by April to cut emissions
in the most polluted sites, with the possibility of new charges on polluting vehicles.
Yesterday the Treasury said that the Government would continue to explore
the appropriate tax treatment for diesel vehicles alongside the air-quality
plan. It is due to consult motor industry leaders on the proposals over the summer
before publishing details in the Autumn Budget. Motoring groups warned that any
increase in taxes would almost certainly lead to the death of diesel vehicles,
despite claims from the industry that the latest generation of cars are far cleaner
than older models".Chris
adds it's my bolding of the text above as I do not know to which documents they
40 year VED exemption for classic cars
Smith noted "the rolling 40 year VED exemption is not mentioned so far
as I can see so we assume it continues to roll although I recall that when the
40 year exemption was introduced and went through in the Finance Bill for that
year it was worded in a way which would require the annual roll forward to be
included in future Finance Acts".
Chris Hunt Cooke responded
"the Finance Act 2016 enshrined the 40 year exemption as a rolling exemption
from 1st April this year, instead of the previous year on year extension,
so it would now require positive legislative action to stop it rolling forward.
The relevant provision reads:
151 VED: extension of old vehicles exemption
from 1 April 2017
(1) Paragraph 1A of Schedule 2 to VERA 1994 (exemption
for old vehicles) is amended as follows.
In sub-paragraph (1) for the words from if to the end substitute during
the period of 12 months beginning with 1 April in any year if it was constructed
more than 40 years before 1 January in that year.
. . . . . . . . . . . . .
The amendments made by this section come into force on 1 April 2017."
170308 @ 1345 Updated: 170310||V8
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