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Road Tax

Road Tax

Does anyone in the UK who intends on buying a new Tesla relise how the new road taxation scales will effect them and also anyone who presently owns one and is thinking of selling it and how the new taxation will effect them?
As it stands from the 1st April anyone buying a new car costing £40000 and over will have to cough up a premium rate of £310 road tax. Bearing in mind if i wanted to buy a new Tesla after the 1st April of this year, because the car costs over £40000 regardless of it being all electric i would still have to pay £310 road tax every year for five years but of course we know tis will go up every year with the rate of inflation.
At the moment anyone who already owns a Tesla in the UK before the 1st April will not be effected so presently i pay zero road tax because it's all electric with zero emissions and because we had a cash incentive by our government for taking the plunge in investing in an electric car.
My question is this, when i come to sell my car in three years who will want to pay the crippling road tax that they will have inherited. It also raises the question of the £40000 price tag, i don't think even the Tesla 3 will come under the £40000 mark and if by some miracle it does, lets not forget about any extras you might think esssential that will tip you over the £40000 price tag plus the £140 road tax per year where as previously it was zero.
The implications of the £40000 upper price limit is going to effect so many car manufacturers when it comes to pricing and all the little extras we love to include which boosts the price up, and it will certainly put off buyers from purchasing a £40000 plus vehicle when they try to include extras and find out it's put them over the threshold.
I'm very dissapointed about the way our government is treating the EV motorist with such contempt.This implication of new road tax rates is just another way of sneaking in new tax rises of which a tiny fraction will go back into the road infrastructure.
This tax is going to be hugely unpopular with the motorist and it certainly makes it less appealing owning an electric vehicle.
A very sad day for me and a retrograde step back for electric vehicles.

J.T. | March 12, 2017

Is there a tax on petrol that is set aside for road building and road repairs in the UK?

paullindsay | March 12, 2017

There is a huge chunk of tax deducted from petrol and diesel, about 60% on a gallon costing on average £1.30.The tax collected from fuel is supposed to be used for road infrustructure and road repairs but the truth is very little of that money finds its way back into the highway system and is diverted to none motoring use. Money raised from Vehicle Excise Duty which the topic is about is also supposed to be used for the upkeepof our highways.

SilverP85plus | March 12, 2017

As electric cars gain more traction in the market, you will see more DMV fees to make up for Tax revenue lost. If not at the DMV level, then they will start raising taxes on electric usage at home.

paullindsay | March 12, 2017

I completely agree with what you say but people are out there comfort zone and need a huge leap of faith to migrate from petrol/diesel to electric and every incentive helps. It's too early to chip away at rewards for buying electric, the government should be encouriging the motorist to ditch the fuel and go for EV instead of extracting as much tax from us as they do. The electric vehicle has a long way to go before the majority of motorists embrace them and taking away incentives is not the way to go.

jordanrichard | March 12, 2017

Here too in the U.S., at least at the state level, gas tax revenue is often siphoned off to pay for other programs.

As for raising taxes on electric usage at home, they can't do that without installing a separate meter for the outlet one has to charge their car.

fabmotorsport | March 12, 2017

Hi , I have just ordered a pre April model s for those reasons , i.e. Zero rd tax for life ., no £ 40. Lux tax etc, but when you come to sell it pre April 17 cars. Will still keep their. Zero tax rates. So they should hold there money better + they have free s chargers. So that so help used values to .
The change in tax helped me go for an S over waiting for a 3 too
Just hope the cars as good as the hype !

paullindsay | March 12, 2017

The car's fantastic but it's a steep learning curve. Everytime you jump in the car you find something else you didn't know about, it'll certainly put a grin on your face and you will get alot of admiring looks, enjoy it.
Regarding zero road tax for life, Me being a pessimist , the cars road tax for life and the governments road tax for life are entirely two different things !!

SilverP85plus | March 12, 2017

jordanrichard | March 12, 2017

As for raising taxes on electric usage at home, they can't do that without installing a separate meter for the outlet one has to charge their car.

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I doubt you will need a meter. It's not too hard to write software to recognize hardware signature connected and usage at the Utility Corp level. Tesla's supercharger software recognizes vehicle hardware signatures now.

SCCRENDO | March 12, 2017

Thats what you guys get for Brexit

jondloe | March 13, 2017

In the USA many states are imposing annual fees on EV and other alternative fuel cars to make up for the losed tax revenues associated with no gas sales. It's hard to argue that EVs do not use and impact our roads, bridges, etc. I think we'll just have to accept some level of road improvement tax levied by the state. We just need to make sure that it is fair.

Mike83 | March 13, 2017

The $700/year license fee should more than cover it.

Mike83 | March 13, 2017

We should also add a Carbon Tax for environmental damages including medical.

RedPillSucks | March 13, 2017

In North Carolina (USA) the state charges property tax on all vehicles, so even though you don't pay at the pump, they got ya with the property tax. I haven't worked out how much that would be.

Frank.B.Smith | March 13, 2017

My argument to "EV drivers don't pay their fair share for road repair" is. EV drivers pay federal taxes that subsidize fossil fuel companies which results in lower gas prices for ICE drivers but provide no benefit to themselves. So take those EV tax dollars and spend them on road repairs instead.

saxxon | March 14, 2017

Government misusing funds extorted from taxpayers is as old a story as government and taxation itself.

Reality is as there are more EVs on the road, the incentives will decrease. Incentives are for driving early adopters, being that they are generally giveaways they can't go on indefinitely. Heck, I'd like to get some free money, but I'd never be caught dead in most of the garbage that was released prior. The Model S I bought is a real car that stacks up in every way against my brother's BMW save travel convenience (still faster to fill a gas thank than charge a battery).

Sounds like you need to hold your politicians accountable for wasting your tax dollars. Good luck with that, not a lot of success with that here either. We had a scandal in our county here with a paving company charging millions and doing nothing but paving the commissioner's driveways (I prefer "freeloaders" as the term). We voted those Democrats out a cycle ago, but this last one we got more of them so once again our tax money is being diverted to pork projects.