Breaking News – VED Tax has been reduced

In September 2019, the tax increase of up to 705% was levied on all newly registered motorhomes, creating disappointing extra cost for customers. Yesterday the Government announced the 2020 Budget, which included changes to the Vehicle Excise Duty (VED) on Campervans and Motorhomes. In effect, the recent 705% increase on VED has been overturned and the first year rate reverts from £2,135 to £265 (a reduction of £1,870); this new rate begins with immediate effect. NCC Director General, John Lally, said…“We have had extraordinary support from Parliamentarians – too many to mention them all – but in particular Richard Holden MP, Sir David Amess MP, Emma Hardy MP, Karl Turner MP and David Davis MP. Rishi Sunak MP – prior to becoming Chancellor – had also indicated support. Alongside the NCC, its members and the wider industry, these MPs worked tirelessly to reverse this increase, knowing the impact it would have on British manufacturing, on jobs and, potentially, on UK tourism. We offer our thanks to all of them and to the media, who highlighted how unfair the tax was. Leisure vehicle manufacturing is a British success story. The steady growth the motorhome industry had seen up to the time of the tax hike was almost instantly halted. We are delighted that our new Chancellor has so quickly understood that motorhomes and campervans should not be taxed as cars, that he has shown concern about the threats to our industry and taken this action to preserve jobs. Motorhomes will now return to being taxed as vans, which is logical as the vast majority are based on a commercial vehicle chassis. This is an amazing result for us, for this vibrant manufacturing industry and for the many thousands who take motorhoming holidays – the vast majority in the UK – each year.”