The Budget - Implications for MotoristsHowever, this increase only applies to cars that were registered on or after 23rd March, 2006. It is worth explaining how the taxation system works. Until March 2001, there was just one annual rate of duty for all cars in the class 'Private/Light Goods', which covers all vehicles produced by Jaguar Cars. Cars manufactured before 1st January 1973 (ie 'Historic Vehicles'), are exempt from VED. Cars registered after 1st March 2001 fall into a series of different taxation bands, dependent on their published CO2 emission figures. The bands range from A to F, with band F representing all cars with a CO2 emission figure of more than 185 (g/km). All petrol fuelled Jaguars fall in the highest band of this taxation structure. In March 2006 an additional band G was introduced, which covers vehicles with a CO2 emission level of more than 225, and it is cars in this band that are subject to the new increased taxation. This band only applies to cars registered on or after 23rd March, 2006. The following table, copied from the DVLA website, shows the various duty rates for different cars. If you own a car registered after 23rd March 2001 your UK registration document (V5C) will show the CO2 emission figure for your particular car. This will enable you to see what rate of duty will apply. If you own a car registered before 23rd March 2001, then you will pay either £115.00 or £180.00 for 12 months duty, based on the engine size. Naturally, all Jaguars fall into the higher category. Calculate the cost of your vehicle tax using the tax tables below. The rates (£) of vehicle tax take effect for vehicle licences taken out from 22 March 2007.
Private/light goods TC11
Diesel car TC49Cars registered on or after 1 March 2001 based on CO2 emissions and fuel type. Please note: These rates apply only to cars that have been type approved within category M1 of Annex II to Council Directive 70/156/EEC and which have been registered on the basis of a type approval certificate that shows its carbon dioxide emissions level in terms of grams per kilometre driven.
Cars registered on or after 23 March 2006
Petrol car TC48Cars registered on or after 1 March 2001 based on CO2 emissions and fuel type. Please note: These rates apply only to cars that have been type approved within category M1 of Annex II to Council Directive 70/156/EEC and which have been registered on the basis of a type approval certificate that shows its carbon dioxide emissions level in terms of grams per kilometre driven.
Cars registered on or after 23 March 2006
Alternative fuel car TC59Cars registered on or after 1 March 2001 based on CO2 emissions and fuel type. Please note: These rates apply only to cars that have been type approved within category M1 of Annex II to Council Directive 70/156/EEC and which have been registered on the basis of a type approval certificate that shows its carbon dioxide emissions level in terms of grams per kilometre driven.
Cars registered on or after 23 March 2006
The table above, together with rates for other types of vehicles and vehicles using alternative fuels, can be found here If you want to find out the CO2 emissions figure for a particular vehicle, go here Jaguar petrol engined cars all have emission figures above 225, apart from the manual 2 litre X Types, which will just escape the punitive new Band G increases (for cars registered after 23rd March 2006).
Jaguar Diesel engined cars all fall below Band G, as follows:-
Cars converted to run on LPG still pay Vehicle Excise Duty based on their original CO2 emission figure as published by the manufacturer, even though their emissions are clearly lower when running on LPG. At present, of course, LPG fuel is taxed at a much reduced rate, so there is still an advantage to having an LPG converted car provided your annual mileage is high enough to justify the expense of the installation. Whilst the tax increases announced in the 2007 Budget for Band G cars will have limited impact in the short term, given the comparatively high initial cost of purchasing larger engined cars, the long term effect will be to reduce the second-hand value of cars falling into Band G, which a few years down the line will undoubtedly shorten their life.
Keith Vincent |