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Darling faces more tax rage over backdated vehicle excise

by AccountancyAge.com

02 Jul 2008

A handful of Labour rebels have threatened to join the Tories in today's vote for a removal of the backdating element of the vehicle excise duty scheme to penalise the more polluting vehicles.

The vehicle excise duty has provoked anger because it retrospectively applies to some cars bought since 2001, the Financial Times reports.

Ronnie Campbell, one of the rebel Labour MPs, last night warned the changes would infuriate voters if they came into force next summer as planned.

'It will be 10p all over again,' he said. But many of the 49 Labour MPs who signed a motion on the issue are expected to fall into line before the vote.

For further reading:

No wavering on green principles, insists Cameron

Read the Financial Times story

Visitor comments Add your comment

It's not backdating

These changes are to come into effect later, they are not changing the VED rates for periods that have already started/passed, so the changes are not being backdated.

The argument seems to be that because people already have the cars then any changes made in respect of those cars are backdating, but when the price of a maintenance agreement on, say, an alarm system goes up we don't call it backdating just because we already own the system.

Changes to things in the future are not, by definition, backdating!

Posted by: Brian Gooch, 02 Jul 2008 | 00:00

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