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Fooling Around

October 16, 2014 Calum Brown
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Motorists buying a new Land Rover from 1 April 2010 will be subject to a new first year rate of vehicle excise duty, also referred to as a 'showroom tax', designed to steer buyers towards choosing lower-emitting models. The one-off rate will apply to all new cars for the first year of registration with the exact cost based on the vehicle’s CO2 emissions. Cars emitting less than 130g CO2/km will be exempt from VED charges for the first year with rates between £110 for cars emitting 131-140g CO2/km to £950 for cars emitting more than 255g CO2/km. Motorists will pay the first year rate of VED when buying their Land Rover, reverting to the new standard rate for every subsequent year. At the upper end of the market, the first year rate equates to a £545 increase for the first year and a £30 increase for each subsequent year although just 1.5% of cars registered in 2009 would fall into this band. ? ?

The 2010 Range Rover, Defender 90 and Defender 110 with emissions of 348, 266 and 295 g/km respectively, fall into the top band of the showroom tax while the 2010 Range Rover Sport, Discovery 4 and Freelander 2 fall below it with emissions of 243, 244 and 179 g/km respectively but will still be liable for an increased VED payment.
Commenting on the new VED system, SMMT chief executive Paul Everitt said, 'We are disappointed that government didn’t take the opportunity in last week’s Budget to defer the introduction of the first year rate or the increase in standard VED rates. Environmental taxes need to be clear and consistent so that motorists can be confident that they will reap the benefits from their decision.'

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