Due to ruling by the European Parliament, the VED for a new motorhome will increase from £265 (PLG rate) to £2,135 – a 705% increase – plus there will be significant higher ongoing yearly tax costs (for a further five years). These are set to come into effect next year.
The National Caravan Council are lobbying to reconsider motorhomes under this new taxing banding. They state:
The new emissions regulations are important, and it is correct that the taxation system encourages new car owners to choose cleaner efficient engines from the vast range of engines and models available. However, because motorhomes have commercial engines, new owners do not have this choice. Due to their unique classification, motorhomes will now attract the highest car tax even if the cleanest most efficient engine is installed.
Motorhomes, unlike cars, are only used for holidays and short breaks – on average 5,000 miles per year. They should not be classified as a car.