Victory! Motorhome road tax increase revoked in Budget

Action: tomorrow is VED-Day!

The NCC, on behalf of the motorhome industry, is asking for urgent action in the Budget to reclassify motorhomes as commercial vehicles for VED purposes to avoid a potentially catastrophic reduction in sales, a drop off in production, adverse impact upon UK staycations and associated job losses throughout the supply chain.

Background

• UK motorhomes are built using a commercial base vehicle, fitted with a commercial engine. These base vehicles are constructed by commercial base vehicle manufacturers (incomplete vehicle) and are then converted into motorhomes by UK-based motorhome manufacturers.
  
  
• Motorhomes have for many years been taxed as private light goods commercial vehicles (PLG- 3,500 kg and below), or private heavy goods commercial vehicles (PHG – over 3,500kg).
  
  
• As a result of a technicality under new EU regulations, new motorhomes with a WLTP Euro 6D/2 engine are no longer subject to a commercial vehicle tax band - Private/Light Goods (PLG/PHG) - when they are first registered. Instead, they are, for the purposes of Vehicle Excise Duty (VED), now taxed as a car.
  
  
• This reclassification means the registration tax for a new motorhome with a WLTP Euro 6D/2 engine has increased from £265 (PLG rate) up to £2,135 – a 705% increase - plus there is significant higher ongoing yearly tax costs for a further five years.
  
  
• As motorhomes have commercial engines, new owners do not have the same wide choice of car models and because of their unique classification, motorhomes will now attract the highest car tax, even if the cleanest most efficient engine is installed.
  
  
• Motorhomes, unlike cars, are used for holidays and short breaks – on average travelling circa 3,000 miles per year. Whereas a light commercial vehicle can do circa 12,800 miles per year, using the same base vehicle, emitting the same CO2 per mile but will be subject to a lower rate in VED.