Chris
Hunt Cooke notes "as we know, the Provisional Collection of Taxes Act
1968 provides that such a resolution shall have the same effect as an act
of Parliament for a temporary period until 5th August, by which time the Finance
Act should be passed. So the DVLA now know that cars built before 1st January
1974 will definitely be in the historic class from 1st April 2014, but I do not
suppose that their systems will allow them to take any account of a future change
of class. I am thinking that the only way an owner of a currently taxed pre-1974
vehicle can take full advantage of the concession, and avoid missing out on a
refund of April’s share of the duty, is to declare a SORN and apply for a
refund of VED within the next few days, and then apply to change to historic status
and re-tax the vehicle on a NIL value basis on 1st April 2014. With the very welcome
40 year rolling exemption aanounced in the Budget Statement the other day, this
situation will in future arise every year". | From
Hansard for 25th March 2014
52. Vehicle excise duty (extension of old
vehicles exemption from 1 April 2014)
Resolved,
That—
(1)
In Schedule 2 to the Vehicle Excise and Registration Act 1994 (exempt vehicles)
in paragraph 1A(1) (exemption for old vehicles) for “1973” substitute
“1974”.(2) The amendment made by paragraph (1) comes into force on 1
April 2014.(3) While a vehicle licence is in force in respect of a vehicle which
is an exempt vehicle by virtue of paragraph (1)—
(a) nothing in that
paragraph has the effect that a nil licence is required to be in force in respect
of the vehicle, but(b)
for the purposes of section 33 of the Vehicle Excise and Registration Act 1994
the vehicle is to be treated as one in respect of which vehicle excise duty is
chargeable. And
it is declared that it is expedient in the public interest that this Resolution
should have statutory effect under the provisions of the Provisional Collection
of Taxes Act 1968.
The
resolution above covers the 12 month VED exemption extension announced in the
Budget 2013. The further concession of a rolling 40 year exemption announced in
the Budget last week will be covered by a section in the Finance Act 2014 which
is underway and likely to reach Royal Assent in mid to late July 2014. |
