Draft Finance Bill 2014

The draft Finance Bill 2014 along with Explanatory Notes (EN) and Tax Information and Impact Notes (TIIN) on the measures announced in the Autumn Statement to abolish the paper tax disc and to introduce VED payment by direct debit were released on 10th December 2013 along with the draft clauses and explanatory notes.

The draft Finance Bill 2014 has been released with the aim of consulting with the public and representative bodies (like the FBHVC) to ensure the legislation will work as intended.

You can download a copy of this package of documents on the HM Treasury website. More

The deadline for providing the DVLA and HM Treasury with comments is 4th February 2014. Comments should be focused on the design of the legislation to ensure it works as intended.

See our report on the Autumn Statement 2013. More








Posted: 131210

The draft Finance Bill 2014 released today includes clauses on the end of paper road tax discs and the online VED payment measures announced in the Autumn Statement 2013 last week. The VED exemption extension change announced in the Budget 2013 for inclusion in the Finance Act 2014 is not included in the draft package released today as we understand the Government will publish the legislation when the final Finance Bill 2014 is laid in Parliament shortly after Budget 2014.

Vehicle Excise Duty: abolishing the paper tax disc
The TIIN explain that the benefits of a paper tax disc have become redundant over time and abolition will provide administrative cost savings to the taxpayer and business, and the removal of an administrative inconvenience to motorists. With this measure motorists will no longer receive a paper tax disc to fix and exhibit to their vehicle as proof that Vehicle Excise Duty (VED) has been paid in respect of their vehicle.
Legislation will be introduced in the Finance Bill 2014 to amend the Vehicle Excise and Registration Act 1994 (VERA) to remove the legal requirement for motorists to fix and exhibit the VED licence to their vehicle in respect of which VED is chargeable including for motorists whose VED liability is nil. Separately, secondary legislation will be introduced after Royal Assent is given to Finance Bill 2014 to make amendments to the Roads Vehicles (Registration and Licensing) Regulations 2002.

For further details see pages A101 to A103 of the TIIN issued by HMRC and attached to the draft Finance Bill 2014 package released today.

Vehicle Excise Duty: introducing a direct debit payment scheme
The TIIN explain that the direct debit scheme will allow motorists to spread their VED costs, and help families and businesses in managing their finances. The scheme will support the Government’s core vision to maximise the digital delivery of vehicle licences and contribute to tax administrative efficiency savings. Motorists will be able to pay their Vehicle Excise Duty (VED) by direct debit should they wish to do so.

For further details see pages A104 to A106 of the TIIN issued by HMRC and attached to the draft Finance Bill 2014 package released today.

VED exemption extension
DVLA have said "At the Budget 2013 the Government announced that it will extend the cut off date from which classic vehicles are exempt from VED by one year. From 1st April 2014 a vehicle manufactured before 1st January 1974 will be exempt from paying VED. Because this is a tax rates and bands related matter no draft legislation was issued for public consultation as part of the publication of the draft Finance Bill 2014 on 10th December 2013. The Government will publish the legislation when the final Finance Bill 2014 is laid in Parliament shortly after Budget 2014.
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