In a move that has been welcomed across the industry, the Chancellor of the Exchequer has confirmed in his budget that the unpopular rise in Vehicle Excise Duty (VED) on motorhomes is to be reversed from 12 March 2020.
The tax increase of up to 705% had been levied from 1 September 2019 on newly registered motorhomes fitted with the new generation, greener, more energy efficient engines. The trade association for the leisure vehicle industry, the National Caravan Council (NCC), immediately began its #fairmotorhometax campaign. By March 2020, the campaigning was backed by 85 cross-party MPs.
NCC Director General, John Lally, said: “Leisure vehicle manufacturing is a British success story. The steady growth the motorhome industry had seen up to the time of the tax hike was almost instantly halted. We are delighted that our new Chancellor has so quickly understood that motorhomes and campervans should not be taxed as cars, that he has shown concern about the threats to our industry and taken this action to preserve jobs.
“Motorhomes will now return to being taxed as vans, which is logical as the vast majority are based on a commercial vehicle chassis. This is an amazing result for us, for this vibrant manufacturing industry and for the many thousands who take motorhoming holidays – the vast majority in the UK – each year.”
Erwin Hymer Group UK Ltd, Managing Director, Rob Quine, commented: “Ours is a highly innovative, inventive and competitive industry, but these tax hikes threatened its stability. I would like to thank the NCC and our new MP, Richard Holden, for all they did.”
James Turner Managing Director, Swift Group Ltd said: “This is an incredibly important result for our industry, it will without doubt resonate with our loyal customers, which in turn will give all businesses within the entire supply chain the opportunity and the confidence they need. Our gratitude extends to all those involved for their support, with special thanks to the NCC and our local MP David Davis.
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This is an amazing result for us, for this vibrant manufacturing industry and for the many thousands who take motorhoming holidays