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VB1331 - Vehicle Excise Duty (Foreign Owners & Green Encouragement) Bill 2018 watch

  • View Poll Results: Should this bill be passed into law?
    As many as are of that opinion, Aye
    On the contrary, No

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    B1331 - Vehicle Excise Duty (Foreign Owners & Green Encouragement) Bill 2018, TSR Government

    Vehicle Excise Duty (Foreign Owners & Green Encouragement) Bill, 2018

    ensure the polluter pays principle is attached fairly to those using the UK Road Network.

    BE IT ENACTED by the Queen’s most Excellent Majesty, by and with the advice and consent of the Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

    1) In this instance:
    (a) Vehicle Excise Duty (VED) is a tax that is levied as an excise duty and which must be paid for most types of vehicles which are to be used (or parked) on the public roads in the United Kingdom
    (b) The Driver Vehicle Licensing Agency (DVLA) is the organisation of the UK government responsible for maintaining a database of drivers in Great Britain and a database of vehicles for the entire United Kingdom.
    (c) The Driver and Vehicle Agency (DVANI) (An Ghníomhaireacht Tiománaithe agus Feithiclí) is a government agency of the Northern Ireland Department for Infrastructure.
    (d) ‘Foreign Owners’ are the registered owners or users of a vehicle of any type that enters the UK which is not registered with the DVLA or DVANI
    (e) A ‘bike’ is a motorised dual wheeled road vehicle that is privately owned and able to carry no more than 2 people.
    (f) A ‘car’ is a road vehicle that is privately owned and able to carry no more than 8 people
    (g) A ‘commercial vehicle’ is any vehicle that does not meet the definition of a car or:
    i. is owned by a company, charity or any other incorporated body
    ii. is used for the purpose of completing work when the owner is self-employed
    h) The territories of the United Kingdom of Great Britain and Northern Ireland consist of: England, Scotland, Wales, Northern Ireland.

    2) Organisational Change
    (a) The DVANI will take control of collecting VED in Northern Ireland from the DVLA
    (b) The DVANI will take control of collecting Foreign VED in Northern Ireland
    (c) The DVLA will take control of collecting Foreign VED in the rest of the United Kingdom.

    3) VED Age Changes
    (a) All vehicles registered before 1973 must be charged annual VED at the appropriate rates for all other vehicles of that nature.

    4) Foreign VED: Entering the Country
    (a) Upon entrance into the United Kingdom, all vehicles that would be eligible for VED should they be UK registered must be charged a set amount based on the levels of Carbon Emissions that they are responsible for producing.
    (b) Cars entering from Ireland that are registered in the Republic of Ireland shall not be liable for the paying of such a fee.
    (c) Any other vehicle entering from Ireland be it registered in the Republic of Ireland or not shall be liable to pay the full amount subsequently listed.
    (d) The appropriate rates upon each ‘Cars’ entry into the country shall be as follows
    0g/CO2/km: £0
    1-50g/CO2/km: £0
    51-75g/CO2/km: £0
    75-100g/CO2/km: £5
    100g-200g/CO2/km: £10
    200g-300g/CO2/km: £20
    300g-400g/CO2/km: £40
    400g/CO2/km +: £50 (with a further £20 charged for every 100g/CO2/km above 400g/CO2/km
    (e) This must be paid at all entrance points to the UK. Vehicles that are unwilling to pay must be parked at the border under the care of the DVLA and DVANI until the person(s) return to leave the border.
    (f) The rates for ‘Bikes’ shall be 80% the amounts provisioned
    (g) The rates for ‘Commercial Vehicles’ shall be 115% the amounts provisioned
    (h) The DVLA and DVANI shall have the ability to increase these amounts by CPI + 1% or 5% each year, whichever is smaller.

    5) Vehicle Excise Duty Amendments
    (a) Current UK based Vehicle Excise Duty Amendments shall be adjusted to ensure that the biggest polluters pay an appropriate amount for the damage they cause to the environment.
    i. This will be done by basing road tax on a 'base-fee': based upon the level of CO2 that is produced, and a mileage modifier based on the previous years mileage as measured at each MOT test undertaken. The base modifiers and the expected fees associated are described in the Appendix of this bills.
    ii. For cars prior to 3 years old, this must be independently confirmed by a body certificated to undertaking an MOT.
    iii. Modifiers may only be increased via an act of parliament, while Base Fees may be increased by the CPI rating set in February of each year to be applied in January the year after.

    6) Commencement, short title and extent
    (a) This Act shall be cited as Vehicle Excise Duty (Foreign Owners & Green Encouragement) Act 2018
    (b) This Act shall come into force immediately upon royal assent.
    (c) This Act extends to the realms as defined in 1.H.

    At present, the Pre April 2017 system charged users at rates that resulted in a taxation gain to the treasury of £5.5 billion (source: https://www.ifs.org.uk/bns/bn09.pdf). This new system will work by setting a base amount paid by any car, and multiplying it by a modifier tied by the number of miles achieved in the years before.

    This modifier is as follows:
    0-1000 miles p.a.: 0.5
    1001-3000 miles p.a.: 1
    3001-8000 miles p.a. 1.3
    8001-10000 miles p.a. 1.5
    10001-15000 miles p.a. 2
    15001-20000 miles p.a. 2.5
    20001+ miles p.a. 3

    This, combined with increases to the base rate for the most polluting cars, and reductions for the least polluting, results in the average car with the average user in the UK paying £110 in the first year and £65 each year thereafter. If the average car did double the average miles this would increase to £125 in each year thereafter.

    If a heavily polluting car (say 205g/km of Co2) did the average number of miles in the UK, they would pay £325 in the first year, and £650 each year thereafter, but upon doing 16,000 miles would then pay £1625 per annum.

    The income raised has been sourced from the fact that there are around 25 million cars registered in the UK doing on average 8,000 miles. (https://www.thinkmoney.co.uk/news-ad...k-0-8581-0.htm) (http://www.bbc.co.uk/news/uk-england-28546589)

    Due to the Limits of TSR a table giving scenarios of cost compared to the new and old schemes has been set up here: https://docs.google.com/spreadsheets...it?usp=sharing

    With regards to the income raised by the Foreign measures, conservative estimates suggest around £30 million is expected to be raised. In reality this figure should be higher as a significant proportion of foreign entrances are via HGVs and Coaches that would pay more to enter the United Kingdom. This has been worked out by the average of 3 million entrances by vehicle at all ports each year and the average CO2 pollution by each road user in the UK each year. (Source: https://www.whatdotheyknow.com/reque...l%20230707.pdf)

    Definition for VED sourced from here: https://en.wikipedia.org/w
    Current Road Tax Amounts here:
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    Nay, I’m still not sure if this is a good idea
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    I must commend the detail and I think it's a good idea, so I'll be voting Aye.

    Sorry DayneD89 my vote should be abstain. Thanks.
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    The Ayes have it, the Ayes have it!

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