IoM To Lower Vehicle Duty For Business, Electric Cars
by Jason Gorringe, Lowtax.net, London
14 April, 2017
The Isle of Man's legislature will shortly consider the Vehicle Duty Order 2017, which contains revisions to vehicle duty, which are intended to support local businesses and lower environmental emissions.
If passed, the proposed changes will result in savings for owners of commercially operated vans and goods vehicles. A new flat rate of GBP200 (USD250) a year will apply to commercially operated vans, while duties for all medium and heavy goods vehicles will fall by five percent, and a new ceiling of GBP1,500 (USD1,877) will be introduced.
Zero-emissions electric cars will be exempt from paying vehicle tax, and the charging structure for veteran, classic, and historic vehicles will also be amended, with no fee imposed for vehicles over 40 years old.
In addition, all motorcycles with engines larger than 125cc will pay GBP50 (USD63) a year, which is below the lowest level of car duty measured on engine size.
The Vehicle Duty Order 2017 also addresses the disparity between charges based on engine size (cubic capacity, cc) and those calculated on carbon emissions. Currently, vehicles with high emissions can pay lower duty than less-polluting models simply because they are newer.
The proposed changes mean that, depending on the charging band a vehicle falls in, some owners will see a reduction of GBP88 (USD110) in duty, while others will pay between GBP1 (USD1.25) and 31 (USD39) more with effect from May 2017.
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