Update on VED
12 month VED exemption extension (from 1st January 1973 to 1st Januray
1974) was announced in an HM Treasury support document released promptly after
the Budget 2013 statement in Parliament. The document stated the NIL value road
tax disc concession would apply from 1st April 2014 for cars "built"
before 1st January 1974.
Since that announcment we have been trying to
obtain clarification as to how the DVLA will process an application to change
the status of an eligible car from PLG to "Historic". We have also sought
clarification of the proecedure for claiming a NIL value tax disc for the first
time on and from 1st April 2014. So far we have seen no clarification and 1st
April 2014 is approaching rapidly.
quite separate but related matter arose in the Mini Budget in late 2013 when an
announcement mentioned the end of the paper tax disc from 1st October 2014.
our previous NEWS items on these topics. More
essential clarifications owners of classic cars eligible for the VED exempt status
are seeking are:|
What is the procedure for changing the vehicle class
from PLG to Historic? We need clarification of the what, when, how and where.
What will be the procedure for applying for a NIL value tax disc? Again
clarification of the the what, when, how and where is needed.
For an owner
with a car "built" in December 1973 how does he or she go about each
stage and are they separate applications or would you have to submit a combined
application for both the status change and disc? We need clarification of when
we may apply for the change of status and what documents (including any DVLA forms)
do we have to send with our application, what evidence of the "built date"
do we need to send (for example an original of a certificate from BMHIT showing
the "Date through Paint Finishing" which the BMHIT archivist says is
the built date accepted by
for the MGBGTV8 model and presumably the original of our present V5C) and what
fee (if any) is payable? Then once we have our car with Historic status on the
V5C how and where do we apply for the NIL value disc and are the two processes
separate or will they be combined?|
At present there is no clear information
on these essential procedures. We will continue to try and get the clarifications.
will the VED exemption extension be incorporated in the Finance Act?
concern raised by fellow member Mike Dunlop in October 2013 was he had found the
VED exemption extension provision had not been included in the Finance Bill that
had reached Royal Assent stage of the parliamentary process in July 2013. On re-reading
the announcement of the VED exemption extension in section 2.148 of the support
document released by HM Treasury promptly after the Budget statement in March
2013, we noted that section mentioned "Finance Bill 2014". So
presumably the provision will be included in the Finance Bill to go through Parliament
following the March 2014 Budget. The FBHVC agrees and says "it is our understanding
that the Finance Act 2014 will include the necessary clause to enable the VED
exemption date change."
That still leaves a concern that the Finance
Act 2014 will probably not reach Royal Assent until July 2014 some 3 to 4 months
after the 1st April 2014 when the VED exemption extension is due to begin. Our
understanding of Parliamentary process is the exemption for vehicles manufactured
before 1st January 1974 will come into force on 1st April 2014. Although the Finance
Bill 2014 will not come into force until it receives Royal Assent (which is usually
sometime around the middle or end of July 2014), sometimes HM Treasury require
vehicle tax rates changes to take immediate effect or from 1st April before the
Finance Bill becomes law. In this case, Budget Resolutions are passed in the Commons
immediately after the Chancellors Budget statement. The resolutions (made
under the Provisional Collection of Taxes Act) give immediate legal power to make
the tax rates changes.
Classic Car Weekly ran a news item in its
latest issue commenting on the "growing number of enquiries from readers
confused about changes to tax exemption for historic vehicles". Later in
the piece it said "DVLA has this week confirmed to
CCW that the planned changes to historic vehicle exemption are still taking place,
with pre-1974 classics exempt from 1st April 014". It then mentioned
a comment from a "DVLA spokesman" that "from
1st April 2014 a vehicle manufactured before 1st January 1974 will be exempt from
paying vehicle excise duty. Vehicle keepers need to complete a V70 form,
the application to exchange a vehicle tax disc. Then they need to send the competed
form and accompanying documentation to DVLA Swansea."
so far as we can see, the V70 form makes no mention of the need for documents
supporting a change of class, like a build date certificate, and it is puzzling
this form is suggested as the form to be used because previously form INF34
had been used. Again we are seeking further clarification.