A major shakeup of vehicle excise duty rates for motorhomes will see a hike in road tax rates which will take immediate effect, reports Zak Jakubowski
From 12 March 2020, the annual vehicle excise duty (VED) for most new motorhomes will be set at a flat rate of £265, rising to £270 from 1 April 2020.
This measure will result in new motorhomes (type approved M1SA) being classified in the private/light goods vehicle or private heavy goods vehicle VED class.
Motorhome manufacturers and dealers will not be required to provide a CO2 emissions figure when registering new motorhomes with the Driver and Vehicle Licensing Agency.
This measure ensures that new motorhomes with the latest engine technology do not attract significant VED increases as a result of Commission Regulation (EU) 2017/1151.
This requires any multi-stage build, including those type approved M1SA, to record the carbon dioxide (CO2) emissions and fuel consumption on their certificate of conformity.
Sheena McGuinness, partner at RSM, said: ‘The government’s proposal to class motorhomes and campervans as cars will result in an increase in road tax for these vehicles of more than 700%.
‘If potential buyers of motorhomes abandon their plans, the repercussions for the motorhome manufacturing industry are predicted to be “disastrous”, to quote Labour MP for Hull East, the main hub of motorhome manufacturing industry.
‘Sales are expected to be significantly lower in the next 12 months due to the new road tax.’
The change to the rules is a result of EU regulation 2018/1832 which was transposed into UK law.
