No, not VED, but the tax that got added to VAT when that was introduced and was necessary to make up the shortfall after purchase tax.
I assume it still exists, but can anyone confirm? Googling just produces references to other sorts of taxation, but I can't imagine it's been dropped. Has it had a name change and is it still around 10%?
Edited by Pugugly on 09/12/2009 at 10:38
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Long gone.
Now only £55 first registration tax.
Plus graduated first year VED from March of between £110 and £950, unless today's announcement changes things.
HJ
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Car tax - imposed on five sixths of the basic price of the car, although I can't remember at what rate, 10 per cent rings a bell.
Several of my customers in the early 1980s were curious about how it was worked out.
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The special car tax was abolished about 10/12 yrs ago - apparently it was because they put on a car tax and then added VAT to it - a tax on a tax.
However Fuel duty is added to the price of petrol and then VAT applied to that so come on Brown abolish the tax on tax ( I would have said Darling but I feel that Brown knows most about taxing the motorist!)
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IIRC it was added to make the price transition between purchase tax and VAT fairly neutral. Then gradually reduced. To prevent a price distortion sales blip.
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... apparently it was because they put on a car tax and then added VAT to it - a tax on a tax...
Several of my customers complained about paying a 'tax on tax', although I'm surprised anyone in authority listened.
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IIRC it was added to make the price transition between purchase tax and VAT fairly neutral.
Car tax existed long before VAT. It existed in 1965 to my knowledge. VAT wasn't introduced until 1973.
tinyurl.com/ygx9e2o
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Snail
are you sure that you are not confusing RFT with 'Special Car Tax'
Unfortunately the link you provided will not work.
RFT or equivalent has been around since the begining of time!
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Thanks, HJ. I had no idea about those - good job someone's paying attention!
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Thank you, chaps - I stand corrected. I recall an argument over certain vehicles (e.g. motor caravans) attracting 'car tax' when they weren't cars, but that must have been over ten years ago. How time flies...
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I seem to recall it was abolished about the same time as Catalytic converters/Unleaded became compulsory (around 1992 ?) as the 'industry' howled about the need to raise every car by £800 or so for the new technology.
Funnily enough as the tax (10%) was removed most manufacturers bumped their prices 5-10% citing 'the weakness of the pound' as the reason.
Parallels nicely with the fat increases in list prices coinciding with the £2000 scrappage deals.
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That might explain why I thought it still existed. I'm sure I'd have noticed if prices had gone down! Good to see that the ratchet principle is still alive and well...
BTW, do you think if I found an old VW 411 (which had a separate, petrol-fired heater) it would qualify for both car and boiler scrappage?
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