Graduated tax for new motorhomes scrapped

HM Treasury has confirmed that the Government will no longer be introducing a new graduated system of Vehicle Excise Duty (VED) for light goods vehicles or new motorhomes first registered from April 2021.

It said the move was 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 graduated system of VED for light goods vehicles and commercial vans was due to be introduced in the spring as part of Government’s strategy to reduce emissions.

The industry body, the National Caravan Council (NCC), which had lobbied for the move, welcomed the news.

“This is excellent news for the industry and for the customer too,” said the NCC’s Alicia Dunne. “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.”