In message <qjn67v$e52$
1...@dont-email.me>, at 23:50:38 on Thu, 22 Aug
2019, TMS320 <
dr6...@gmail.com> remarked:
>On 22/08/2019 18:27, Roland Perry wrote:
>> In message <qjmhdj$k5k$
1...@dont-email.me>, at 17:55:15 on Thu, 22 Aug
>>2019, TMS320 <
dr6...@gmail.com> remarked:
>>
>>>>>>>> It is a deliberate malevolent trap set by clueless bureaucrats
>>>>>>>>to catch out the entirely innocent newly bereaved and extract
>>>>>>>>money from them.
>>>>>>>
>>>>>>> The present system of charging people
>>>>>> tax?
>>>>>>
>>>>>>> only when they change car is much fairer than spreading the cost
>>>>>>>onto everybody's annual premium.
>>>>>> insurance?
>>>>>
>>>>> The discussion is about vehicle tax.
>>>> Why them mention 'premium', which is usually an expression related
>>>>to insurance.
>>>
>>> If you insist. Don't spread the cost everybody's annual ...tax...
>
>> VED is not a zero sum game. They collect what they can, the
>>uncollected isn't imposed upon the remainder.
>
>I don't think you get it. The government puts money collected through
>tax into a pot.
>
>In the present scheme, if someone changes car every year they will put
>more into the pot than another person that changes car every 5 years.
>If they refunded the days every time a car changes hands (*) they would
>have to collect it back by raising the rates to collect the same amount.
That proposition is precisely what I was challenging. They don't have a
"target pot" and then tinker with the rates of VED to make ends meet.
The actual headline rates are set by environmental considerations (with
Zero being the trendy option), and in any event the inevitable flushing
out of the system of old gas-guzzlers to be replaced by newer more
efficient cars is eroding the VED revenue stream far faster than any
increases introduced in "Green Budgets" in the basic rates.
[People buying fewer cars in a recession also affects the income stream
of VAT as well as VED. And the newer more fuel efficient (and electric)
cars reduces the fuel duty and VAT income as well.]
In fact the tax on fuel swamps VED, to such an extent that the freezing
of the former is costing the same £5bn a year as is collected by the
latter.
At that level, the dual-taxation of secondhand cars for a month is
fiscally a drop in the ocean[2], and merely appears vindictive to the
motorist. They'd do almost as well increasing the policing of
unregistered cars, which have more than doubled in the few years since
this scheme was introduced (also around the 2% mark).
>The frequent changer would benefit at the expense of the infrequent
>changer.
The status quo was that VED transferred with the vehicle. Now that it
doesn't, unless the vehicle is SORNed[1]] or scrapped, or sold to a moor
dealer, every change of owner results in a whole month of double
taxation. To give people a proportionate refund, and allow new taxation
to start part-way through a month, would simply return to that, from a
fiscal point of view.
>(*) roughly £140/24 (half a month) or £6. I don't know how many cars
>change hands every year but it is clearly not insignificant.
The RAF foundation says 7,945,040 used cars changed hands in 2018 (from
a total installed base of 40m), and that the average car has 4 owners in
its lifetime. They quote an average lifetime of 14yrs (slightly longer
for petrol than diesel).
[1] In theory it's possible to SORN a vehicle at the end of a month,
then un-SORN it with new owner a day later. But that's a lot of
work, and the timetable doesn't suit every transfer. Especially in
the case of bereavement.
[2] Average VED of perhaps £20/month times 8million is 2%
--
Roland Perry