Preview of the Budget Statement 2014


As usual we will have a prompt report on the Budget Statement within an hour or so of the Chancellor sitting down in the House of Commons.

Autumn Statement 2013
See our report. More

Budget 2013 - see our report in March
Our prompt report of the key points for classic car enthusiasts.
HM Treasury & HMRC

Budget statement 2012- see our report

See our report. More & More

HMRC website
More



Posted: 140317

Budget Statement on Wednesday 19th March
The Budget Statement 2014 will be made in the House of Commons by the Chancellor of the Exchequer, George Osborne, later this week on Wednesday 19th March.
The Statement provides an update on the Government’s 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 will be available on the HM Treasury website following the Chancellor's statement to Parliament but as usual we will have a prompt report on the measures announced which will be of interest for the classic motoring enthusiast.

What might we expect to see in the Budget Statement for classic car motoring?


Fuel duty

In the Autumn Statement 2013, as well as scrapping the 2p per litre increase that was due in September 2014, George Osborne confirmed that no further rise would take place until at least May 2015 to ease the cost of motoring for the general public and UK business. To date, fuel duty has now been frozen for over four years, the longest duty freeze for over 20 years. Since their election in 2011, the Coalition has cancelled or delayed all the fuel duty rises that had been announced by the previous Labour administration. That means compared with the previous Government's plans, petrol will is around 20p per litre less. That is £11 less every time you fill up or, for a typical classic car use of say 5,000 miles a year, a saving of around £170.

However by scrapping all intended rises in duty over the last four years, the Treasury has sacrificed £22 billion of potential tax revenue; a loss which will have to be balanced by cuts elsewhere in the economy.

VED exemption for cars built in 1973
In the support document issued by HM Treasury shortly after the Budget Statement in March 2013 an announcement tucked away on page 84 provided the very welcome news that 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
See additional information on VED exemption. More

VED rates and bands
The Budget Statement in March 2013 announced that 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 Statement added the Government has no plans to make significant reforms to the structure of VED for cars and vans in this Parliament. So from 1st April 2014, VED rates are likely to continue to increase in line with the Retail Prices Index (RPI). According the previous announcements, the Government has shelved its plans to reform to the structure of VED bands for cars and vans in this Parliament. So the bands will remain. (Para: 2.146, page 83).
HM Treasury


Abolishing the paper tax disc and payment of road tax by Direct Debit
These measures were announced in the Autumn Statement and are due to be introduced from 1st October 2014. More

VAT - no change
An increase in the VAT rate is very unlikely and a reduction from the current 20% seems unlikely too.

Insurance tax
A change has not been suggested which might have an impact on classic car motor policies. 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