Motoring taxation in the United Kingdom consists primarily of vehicle excise duty commonly known as VED, vehicle tax, car tax, and road taxwhich is levied on vehicles registered in the UK and hydrocarbon oil duty normally referred to as fuel tax which is levied on the fuel used by motor vehicles.

Road pricing in the form of congestion charges are in place in London and Durham. However these are generally viewed as usage charges rather than as tax for legal purposes although this interpretation is disputed by the USA and some other embassies in relation to the London congestion charge. The history of motoring taxation was closely linked to the construction of roads untilsince when motoring taxation has been treated as 'general taxation' with roads competing for funds with other departments on an equal basis.

In the early years of the Twentieth Century funding for roads and related infrastructure was drawn mainly from local ratepayers and the tram companies, who were obliged to maintain the road around their tracks under the Tramways Act of The price of fuel for steam engines had been subject to local coal duties until their abolition inand centrally controlled during World War I and World War II.

A new duty was introduced in on "motor spirit" imported petrolleaving alternative fuels duty-free. The Roads Act required councils to register all new vehicles and to allocate a separate number to each vehicle and to Provision for the collection and application of the excise duties.

The act also established the Road Fund.

The Road Fund Licence later renamed as Vehicle Excise Duty was introduced in [ citation needed ] and improve roads which had suffered as a consequence of the Great War.

The Minister of Transport was responsible for collecting and spending the money collected [8] although in later years the Treasury assumed responsibility for the allocation of funds. Increased transportation of freight by heavy road vehicles also increased the wear on roads and led first to a "wetted tax" for steam road locomotivesfollowed by the adoption of the recommendations of the Salter Report of for all heavy vehicles.

This addressed a perception that the free use of roads was unfairly subsidising the railway's competitors, through the introduction of an additional axle weight duty within the VED in order to charge commercial motor vehicles for the costs they generated. There were exceptions for vehicles that seldom used public roads, such as agricultural tractors.

This annual duty was payable by all road hauliers in proportion to the axle load and had the effect of removing many heavy steam-powered vehicles from the road. It was accompanied by changes in legislation that relieved local authorities of some of their costs through new abilities to set weight and speed limits. The Road Fund was abolished on 1 April as a result of the Finance Act[9] and motoring taxation being treated as general taxation since that date.

Since motoring taxation has been treated as 'general taxation' losing its direct connection to the funding of roads and motoring infrastructure. The Smeed Report of suggested that "road users should pay the costs that he imposes upon others", including road costs construction, maintenance, lightingcongestion the delay the motorist causes to others and social costs risk, noise, fumes.

In March of the same year motoring organisations appealed to the Chancellor of the Exchequer to reduce the "disturbingly high cost of motoring" by cutting motoring taxation in the forthcoming budget. Following extensive and politically damaging road protests in the UK during the early s including the M11 link road and Twyford Down the Conservative government introduced the Fuel Price Escalatorwhich were automatic fuel tax increases above inflation with an objective to stem the increase in pollution from road transport and cut the need for new road building.

The policy was retained by the incoming Labour government in and was withdrawn after the fuel protests of Since policy cues have been given using the income tax system to encourage the purchase of company cars with low emissions. In Marcha graduated vehicle excise duty system, with tax bands based on CO2 ratings, was introduced as an incentive to purchase vehicles with lower emission ratings. In the government announced that it was consulting on introducing HGV road user charging in order to ensure that foreign hauliers pay their fair share towards the upkeep of British roads.

In spite of these protests, the country's economy and motorists' behaviour has generally become less sensitive to the price of fuel at the pump, with economists now [ when? Hydrocarbon oil dutycommonly referred to as 'fuel duty' or 'fuel tax' is an excise duty levied on some fuels used by road vehicles in the United Kingdom.

Tax is based on fuel volume, rather than as a percentage of the selling price. Some vehicles including local bus services, some farm and construction vehicles and aviation pay reduced or no fuel duty.

A fuel duty rebate is available for Bus transport in the United Kingdom. In MayUK fuel taxes were the highest in Europe. Vehicle Excise Dutyalso commonly known as 'VED', 'vehicle tax', 'car tax' and 'road tax', is a vehicle road use tax levied as an excise duty which must be paid for most types of vehicle which are to be used or parked on the public roads in the United Kingdom.

A 'Statutory Off Road Notification SORN ' must be made for a registered vehicle that is not being used on the road, and which has been taxed since 31 January VED was introduced in the budget; the current system, which applies specifically to motor vehicles was introduced in and was initially taxation share options uk directly into the Road Fund which was ring-fenced for road construction untilafter which time it was treated as general taxation.

The one-time fee charged by the Driver and Vehicle Licensing Forex trade room miami for the compulsory taxation share options uk of a motor vehicle which is to be used or kept on public roads.

Customs duties on some Grey import vehicles and vehicle components or spares from outside the EU may be assessed at an additional charge which is then subject to VAT. The value of a vehicle bought by a company for the dedicated use of its staff is treated as a taxable benefit for that individual, and assessed by HMRC with other income for income tax purposes.

Until their financial benefit was assessed primarily based on price and mileage driven; this was then modified so that vehicles with lower emissions were assessed at a lower value than those with higher emissions.

In addition, the taxable allowance for mileage using private cars has remained static. A significant proportion of new vehicles are bought as company cars, thus this method of charging is not only aimed at encouraging companies to use "cleaner" vehicles, but, when sold on the second-hand market, these vehicles will filter through and raise the efficiency of the national 'fleet'.

In London and in a small number of other places road usage charges in the form of road pricinghowever download binary options signals providers review are generally viewed as 'usage charges' rather than as tax for legal purposes although this is disputed in relation to stock brokers in dubai for us market London congestion charge by the USA and some other countries.

The London congestion chargewhich applied to most vehicles entering parts of Central London was introduced in with an extension into West London in Towards the end ofthe Mayor of London proposed the introduction of a variable congestion charge. Electric zero-emissions vehicles are already exempt from the charge.

The London low emission zonea pollution charge scheme, was introduced between February and January covering nearly all of Greater London [28] Payment of the LEZ charge is in addition to any congestion charge required.

In the Dartford Crossing construction forex flash trading reviews was paid off, which should have resulted in the scrapping of the toll fee to cross.

However, the government decided to continue to charge most foreign currency exchange chicago ohare airport users to keep congestion levels down. As with congestion charging schemes, all proceeds must be used for transport purposes.

The UK's first privately operated motorway opened in The M6 Toll originally the Birmingham Northern Relief Road is designed to relieve the M6 through Birmingham, which is one of the most heavily used roads in the country.

The Durham City congestion charge was introduced in There are only two toll roads which are public rights of way Rye Road between Hoddesdon and Roydon and College Road, Dulwich together with some five private stocklands wetherill park christmas shopping hours. Inthe Government published proposals for a UK wide road pricing scheme.

This was designed to be revenue neutral with other motoring taxes to be reduced to compensate. Nottingham became the first city in the UK to introduce a workplace parking levy. This revenue decline is partly due to improved vehicle efficiency and the growth of plug-in electric vehicles. Among the options available to the government to offset the loss, a further increase of the duty on petrol and diesel or the introduction of new taxes on alternative energy sources such as electricity for vehicles were considered.

However, due to lack of popularity of the former and the risks of hindering the entire green vehicle strategy, the IFS study recommended to introduce a nationwide system of road pricing to charge drivers by each mile driven, with higher pricing in congested areas at peak times, while reducing the existing motoring taxes. Under this strategy drivers in the countryside would be likely to pay less, as rural motorists are currently overtaxed according to the study.

From Wikipedia, the free encyclopedia.

Roads in the United Kingdom. Vehicle first registration fee. Institute for Fiscal Studies and Royal Automobile Club Foundation for Motoring. Chamberlain's Statement, New And Increased Taxes". HC Deb 17 June vol cc". Retrieved 13 April The major change in petrol taxation came under the Conservatives in with the introduction of the Fuel Price Escalator.

The escalator was designed as a means both to raise money and discourage car use on environmental grounds UK haulage firms already have to pay to make journeys in other European Union countries, including France. Transport Minister Mike Penning said charging overseas companies would create a "fairer" situation.

Is transport running out of affordable fuel? Archived from the original PDF on 4 March Archived from the original on 13 May The Blue Book Report. Office for National Statistics.

Most of the provisions apply on all roads throughout Great Britain, although there are some exceptions.

Archived from the original PDF on Archived from the original on 10 October Archived from the original PDF on 7 December Archived from the original on 30 December Fifth Annual Report" PDF. Guardian News and Media.

Cleaner air for Greater London. The Motorway Archive Trust. Archived from the original on 23 June Archived from the original on 9 June Institute for Fiscal Studies IFS. Great Britain Motoring taxation Driving Road signs Wales. Anomalously numbered roads Junctions Motorways Primary destinations Unused roads. Retrieved from " https: Motoring taxation in the United Kingdom Taxation in the United Kingdom Transport policy in the United Kingdom. All articles with dead external links Articles with dead external links from October Use British English from January Articles needing additional references from November All articles needing additional references All articles with unsourced statements Articles with unsourced statements from April All articles with vague or ambiguous time Vague or ambiguous time from March Articles with unsourced statements from June Use dmy dates from June Navigation menu Personal tools Not logged in Talk Contributions Create account Log in.

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