VED exemption extension update

Budget 2013 report
posted within 30 minutes of the Chancellor sitting down. Report


VED exemption extension announcement on page 84 of the Budget 2013 support document issued by HM Treasury. More

Finance Act 2013 following Royal Assent on 17th July 2013. More


Comment
When I was scanning the Budget 2013 support document as part of my checks for drafting the Budget report, I recall my surprise on finding Clause 2.148 on page 84 of the document and did notice at the time "Finance Bill 2014" was in parenthesis at the end of the clause. At the time I thought it odd as most announcements of tax and other measures are then swept into the next Finance Bill which then goes through the parliamentary process which finally results in a Finance Act receiving Royal Assent when the measures apply. I did not dwell on that for too long and looking back now, with the benefit of Chris Hunt Cooke highlighting the point now, it does seem an odd way of handling the concession extension by having it enacted as part of the Finance Act 2014, particularly as the concession is due to apply from 1st April 2014. Still we should be pleased the concession has been extended by 12 months and sincerely hope it might roll on another 12 months in the Budget 2014.
Victor Smith

Posted: 130730
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Following the Budget Statement made by the Chancellor of the Exchequer George Osborne in March 2013, the Finance Act 2013 incorporating the measures received Royal Asset on 17th July 2013. So when Mike Dunlop contacted us to say he had noticed the Act had gone through both "Houses" and is now law but he could not find any mention of an amendment to an extension to the historic
vehicle tax exempt status in the Finance Act 2013 he asked had we heard anything through our contacts? Mike added "before I cough up £40 on a dating certificate from Gaydon I'd like to know it's going to be worth it!"

So the V8 Webmaster looked up the Finance Act 2013 on the Government website at www.legislation.gov.uk and checked through the vehicle excise duty clauses 187 to 190 and elsewhere and could find no trace of any measures covering a 12 month extension to the VED exemption concession. So he then contacted Chris Hunt Cooke who responded with a useful observation which is the likely explanation.

Chris said "I have been unable to find anything in the current legislation so I went back to the original announcement and found that it was reported to read (it seems to have gone into an archive) as shown below." That is the same text the V8 Webmaster spotted on page 84 of the support document released by HM Treasury shortly after the Chancellor sat down after his Budget Statement in March 2013. Chris then set out his thinking as follows: "I think this must mean that the Government has signalled its intention to introduce the 12 month extension this year, but will actually enact the change next year in the 2014 Finance Bill and Act. That might seem too late for it to come into force for 1st April 2014 (as indicated in the announcement - see below), since the 2013 Finance Act has only just got Royal Assent in July, but I believe that all adjustment of tax and excise rates is pushed into a bill that goes through immediately after the Budget each year unopposed, to be confirmed in the actual Finance Act in due course."

So with the combination of the:
> planned closure of the DVLA local offices at the end of 2013 and consequent reorganisation of their workload within DVLA, when presumably the processing of VED exemption claims being processed in 2014 will move to DVLA Swansea, and the
> enactment of the 12 month extension to the VED exemption concession, due to apply from 1st April 2014, not likely to be passed in the Finance Act 2014 until Royal Assent is granted probably in early July 2014,
quite how our applications for new VED exemption will be processed is not yet known.
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