Draft Finance Bill
2014
The
draft Finance Bill 2014 along with Explanatory Notes (EN) and Tax Information
and Impact Notes (TIIN) on the measures announced in the Autumn Statement
to abolish the paper tax disc and to introduce VED payment by direct debit were
released on 10th December 2013 along with the draft clauses and explanatory notes.
The draft Finance Bill 2014 has been released with the aim of consulting
with the public and representative bodies (like the FBHVC) to ensure the legislation
will work as intended.
You can download a copy of this package of documents
on the HM Treasury website. More
The
deadline for providing the DVLA and HM Treasury with comments is 4th February
2014. Comments should be focused on the design of the legislation to ensure it
works as intended.See
our report on the Autumn Statement 2013. More
Posted: 131210
 |
 | The
draft Finance Bill 2014 released today includes clauses on the end of paper
road tax discs and the online VED payment measures announced in the
Autumn Statement 2013 last week. The VED exemption extension change announced
in the Budget 2013 for inclusion in the Finance Act 2014 is not included in the
draft package released today as we understand the Government will publish the
legislation when the final Finance Bill 2014 is laid in Parliament shortly after
Budget 2014.
Vehicle Excise Duty: abolishing the paper
tax disc
The TIIN explain that the benefits of a paper tax disc
have become redundant over time and abolition will provide administrative cost
savings to the taxpayer and business, and the removal of an administrative inconvenience
to motorists. With this measure motorists will no longer receive a paper tax disc
to fix and exhibit to their vehicle as proof that Vehicle Excise Duty (VED) has
been paid in respect of their vehicle. | Legislation
will be introduced in the Finance Bill 2014 to amend the Vehicle Excise and Registration
Act 1994 (VERA) to remove the legal requirement for motorists to fix and exhibit
the VED licence to their vehicle in respect of which VED is chargeable including
for motorists whose VED liability is nil. Separately, secondary legislation will
be introduced after Royal Assent is given to Finance Bill 2014 to make amendments
to the Roads Vehicles (Registration and Licensing) Regulations 2002.
For
further details see pages A101 to A103 of the TIIN issued by HMRC and attached
to the draft Finance Bill 2014 package released today.
Vehicle
Excise Duty: introducing a direct debit payment scheme
The TIIN
explain that the direct debit scheme will allow motorists to spread their VED
costs, and help families and businesses in managing their finances. The scheme
will support the Government’s core vision to maximise the digital delivery
of vehicle licences and contribute to tax administrative efficiency savings. Motorists
will be able to pay their Vehicle Excise Duty (VED) by direct debit should they
wish to do so.
For further details see pages A104 to A106 of the TIIN issued
by HMRC and attached to the draft Finance Bill 2014 package released today.
VED
exemption extension
DVLA have said "At the Budget 2013 the
Government announced that it will extend the cut off date from which classic vehicles
are exempt from VED by one year. From 1st April 2014 a vehicle manufactured before
1st January 1974 will be exempt from paying VED. Because this is a tax rates and
bands related matter no draft legislation was issued for public consultation
as part of the publication of the draft Finance Bill 2014 on 10th December
2013. The Government will publish the legislation when the final Finance Bill
2014 is laid in Parliament shortly after Budget 2014. | |
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