The National Caravan Council is claiming a second victory in its campaign to prevent a significant rise in vehicle tax on motorhomes, after the Government said it has abandoned plans to change the system from next April.
Following a U-turn on vehicle excise duty (VED) earlier this year, the Government had said it would be introducing a graduated VED system for new motorhomes registered after April next year, to encourage the use of lower emission vehicles.
But HMRC has now said that new motorhomes will continue to be taxed in the private/light goods class. It said it had decided not to make any changes “to avoid distracting the automotive sector and businesses more widely from the challenges they currently face in the light of the Covid-19 pandemic”.
The NCC’s Alicia Dunne said the change of heart was “excellent news”.
She said, “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.”
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HMRC has now said that new motorhomes will continue to be taxed in the private/light goods class