Vehicle Excise Duty Update

Vehicle Excise Duty (VED) – NCC’s campaign to have motorhomes re-classified pays second dividend

HM Treasury has confirmed to the NCC today that Government will “not now introduce a new graduated system of Vehicle Excise Duty for light goods vehicles or new motorhomes first registered from April 2021”. This is to “avoid distracting the automotive sector and businesses more widely from the challenges they currently face in light of the COVID-19 pandemic. New motorhomes will continue to be placed and taxed in the Private/Light Goods class.”

The NCC’s Alicia Dunne explains: “The new graduated system of VED for light goods vehicles and commercial vans was due to be introduced next spring as part of Government’s strategy to reduce emissions.

“This is excellent news for the industry and for the customer too. With increasing demand for holidays in the UK and the surge in desire for owning a leisure vehicle, it is good news for touring parks too. Hopefully, the current recent growth in registrations of new motorhomes (+71%, +41% and +55% in July, August and September respectively) can be sustained into 2021.”