Report on the Budget 2013

George Osborne, the Chancellor of the Exchequer for the Conservative-LibDem Coalition government, presented his annual Budget Statement to the House of Commons on Wednesday 20th March 2013. As usual we have a prompt report on the measures announced which will be of interest to the classic motoring enthusiast all within less than 30 minutes of the Chancellor sitting down in the House of Commons.

Budget
The Budget provided an update on the Government’s plans for the economy based on the latest forecasts published alongside the Budget Statement by the Office for Budget Responsibility. Full details of the announcements are available on the HM Treasury website following the Chancellor's statement to Parliament but as usual we have a prompt report on the measures announced which will be of interest for the classic motoring enthusiast. HM Treasury website

Budget Statement 2013 from the Chancellor of the Exchequer. More

HM Treasury Budget 2013 document. HM Treasury

HMRC support material
for the Budget Statement 2013. More

Income tax personal allowance for those born after 5 April 1948 and basic rate limit for 2014-15. HMRC



Reports on earlier Budget and Mini-Budget statements

Autumn Statement 2012
Our prompt report of the key points for classic car enthusiasts. More

Budget statement 2012- see our report

See our report. More

Posted: 130320 @ 1405
The Budget for classic car motoring
This year the Chancellor's Budget had good news - the cancellation of the next 3p fuel duty rise due in September 2013 and the extension of the Classic Vehicle VED Exemption to 1st January 1974 with effect from 1st April 2014. That's quite something to celebrate in the 40th Anniversary Year for the MGBGTV8 model.

Fuel duty

The 1.89 pence per litre fuel duty increase that was due to take effect on 1st September 2013 will be cancelled. The HM Treasury document also mentions that in 2015-16 the duty differential between the main rate of fuel duty and the rate for compressed natural gas will be maintained, and the duty differential for liquefied petroleum gas will be reduced by the equivalent of 1 penny per litre. HM Treasury & HMRC

The fuel duty announcement was what UK MG enthusiasts and motorists generally wanted to hear in the Budget Statement 2013. What has been the effect of freezing fuel duty over the last two years? More

VED: Classic Vehicle Exemption
The Government 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. (Para 2.148, page 84) HM Treasury

How can I find the build date for my MGBGTV8?
See our guide note. More

VED rates and bands
From 1st April 2013 VED rates will increase in line with RPI, apart from VED rates for heavy goods vehicles (HGVs) which will be frozen in 2013-14. The Government has no plans to make significant reforms to the structure of VED for cars and vans in this Parliament. So the bands will remain. (Para: 2.146, page 83) HM Treasury

In the Budget in March 2012 VED for 2012-13 increased by inflation (RPI). So for the pre-graduated vehicles over 1549cc the VED rate rose rise by £5 from £215 (2011-12) to £220 from 1st April 2012. No further increase was mentioned in the Autumn Statement.
Tax rate tables

VED: tax disc display waiver
To reduce tax administration costs, the Government will put off-the-road declarations onto an indefinite basis. The Government will also extend the grace period to 14 days, following the payment of tax, on the non-display of the tax disc in a vehicle. HM Treasury & HMRC


Announcements in previous Budget statements where no additional information has been seen today

Changes to transport taxes in the Budget statement in March 2012
A couple of clauses in the Transport taxes section, on page 70 in the Budget "red book" in March 2012, were interesting but no further announcement was made in the Budget Statement. More

VAT - no change
Thankfully there was no increase announced in March 2012 and no change was announced in the Autumn Statement.


Insurance tax
There was no announcement in the Budget Statement 2013 of any change on insurance tax. In the Budget in March 2012 the standard rate of 6% (Jan 2011 - April 2012) remained at 6% for 2012-13 - see page B18 of the HMRC document. Tax rates & allowances Annex B
V8 Register - MG Car Club - the leading group for MG V8 enthusiasts at www.v8register.net