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VED reform
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Vehicle tax (VED) is changing...
When we wrote to you on 30 June, we told you that VED for new vehicles and motor homes (M1, M1SP and M1G vehicles) registered from 1 April 2017, is changing. Vehicles registered before this date will continue to be licensed in the same way, as will all non M1 vehicles.
We explained that new first licence rates of VED will be introduced based on the vehicle’s CO2 emissions and customers will either pay a standard rate after the end of the first licence or a standard rate plus an additional rate for a 5 year period.
As these changes are based on the list price of the vehicle when it is first registered, there will be changes to the current first registration processes to capture the list price or notional price of the vehicle. The price provided must be the list price or notional price of the vehicle on the day before the date that it is first licensed and registered.
In the attached briefing we have given an explanation of the list and notional prices, the application form changes and AFRL web changes in more detail. It also provides detail on where to go to find out more about AFRL co-op changes.
Future changes to the electronic first registration serviceThe changes to the current AFRL web and co-op system will be implemented ready for the required VED changes which come into effect from 1 April 2017.
As well as these changes we’re redeveloping our web based service to improve its look and feel and to enhance its functionality, with the aim of making it easier to use. We are currently carrying out user testing with dealers/retailers on a prototype ‘register a vehicle’ service and will continue to develop it based on your feedback. We will provide more details around the longer term changes in future updates.
Next steps...We will continue to work with you to prepare for the changes, focusing on how we can help you deliver the message about the changes to the general public as you are the first point of contact with the customer. We will continue to feedback on progress.
Anyone who wishes to be added to our industry distribution list to receive further communications, ask any questions about the changes and give us feedback should contact [email protected]
Please share this with your colleagues.
VED reform
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List price and notional price
What ‘list price’ means
• The list price is the individual retail price published by the manufacturer, importer or distributor for the vehicle if sold in the UK
• The list price for electric vehicles is the list price before any grants or discounts
• The list price must be provided as it stands on the day before the date on which the vehicle will be licensed and registered
• Where a vehicle does not have a UK list price the notional price must be provided.
What ‘notional price’ means
This is what you would reasonably expect the list price to be for a vehicle of this kind. For example, an imported vehicle may not have a UK list price, perhaps because it is left hand drive, or because it is a model not introduced into the UK market.
It is the price which might reasonably have been expected to be the list price if its manufacturer, importer or distributor had published a price as the inclusive price appropriate for a sale of a vehicle of the same kind sold in the U.K.
What ‘list price’ or ‘notional price’ includes
The list price or notional price includes the price of any non-standard option fitted by the manufacturer before delivery to the dealer/retailer. The list price also includes any delivery charges for the vehicle, including any pre-delivery inspection costs (PDI) and VAT. In the case of electric vehicles, if the battery is leased, the list price also includes the cost of the battery.
What ‘list price’ or ‘notional price’ does not include
Any non-standard options fitted by the dealer/retailer are not included in the list price. Also any incentive options such as track days, servicing or warranties.
Mobility accessories are not included in the list price where the accessory is designed to enable a disabled driver or passenger to use the vehicle.
When you need to provide the list price
You must provide the list price or notional price for M1, M1SP and M1G vehicles with a CO2 emissions figure.
In addition, electric M1, M1SP and M1G vehicles are subject to the scheme and a list price will be need to be provided.
Multi-stage build vehicles (M1SP) with no CO2 emissions figure on the final type approval certificate will continue to be licensed in the PLG tax class as they are now, so no list price needs to be provided.
Who provides the price
The list price or notional price will initially be provided by the manufacturer or importer. However, this can be amended by the dealer/retailer when the vehicle is registered, in order to capture any changes in price between the upload of the vehicle data/printing of the V55 form and the day before the date that the vehicle is registered and licensed.
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What’s included What’s not included
Manufacturers Recommended Retail Price
Warranty/Insurance and service packages etc
The price of any non-standard option fitted by the manufacturer
Any non-standard option fitted by the dealer
VAT
Modifications such as ‘police packs’, ambulance/fire engine modifications
Electric vehicles – If the battery is leased then the cost of the battery constitutes part of the list price
Modifications for disabled users
Delivery charges inc. pre delivery inspection charges
First registration fee and cost of first licence
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Advanced registrations You will still be able to register vehicles up to 14 days in advance of the date from which you want the vehicle to be licensed and registered. In this case the list price/notional price can be recorded as the list price on the day before the advanced registration is submitted to DVLA e.g. If an advanced registration is submitted on the 20th of the month, then the list price/notional price will be the price on the 19th of the month (i.e. the day before the advanced registration is submitted to DVLA). The vehicle license would start from the 1st of the following month.
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M1 vehicles with no type approval or no CO2 emissions figure on the final type approval such as multi-stage builds, motor homes, kit vehicles. Some M1 vehicles will not need type approval when they are registered because of who they are being registered to i.e. police, crown, diplomatic, prototype etc. Other vehicles such as multi-stage builds, motor homes, kit vehicles etc will not have a CO2 emissions figure as part of the final type approval information. As these vehicles do not have type approval with a final CO2 emissions figure they will continue to be licensed in the PLG tax class and the list price will not need to be provided.
Where a multi-stage build, motor home or kit build has a CO2 figure on the final type approval they will fall within the scheme so a list price must be provided.
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VED reform
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Form changes V55/1 forms
In order to capture the list price/notional price of the vehicle the day before it is licensed and registered, the V55 forms will be changing. Two new fields will be added, numbered 44 and 45. These fields have been added in a position on the page which means that the other boxes have not moved; they’ve just been renumbered.
Field 44
The list price/notional price of the vehicle added by the manufacturer/importer at the time of issuing the form. The list price/notional price should be provided in pence. This has been done as a result of industry feedback to make the form easier to print, directly from the AFRL system.
Field 45
The revised list price/notional price of the vehicle on the day before the date on which the vehicle will be licensed and registered. This only needs to be added by the person registering the vehicle if the price has changed between the issue of the form and the registration of the vehicle. The revised list price/notional price should be provided in pounds and pence.
New versions of the V55 forms will be available for use from the beginning of October 2016. You can continue to use the old versions of the forms for registrations before 1 April 2017 and for non-M1 vehicles where the list price or notional price is not needed.
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Form changes
V55/2 forms
In order to capture the list price/notional price of the vehicle the day before it is licensed and registered, the V55 forms will be changing. Two new fields will be added, numbered 44 and 45. These fields have been added in a position on the page which means that the other boxes have not moved; they’ve just been renumbered.
Field 44
The list price/notional price of the vehicle added by the manufacturer/importer at the time of issuing the form. The list price/notional price should be provided in pence. This has been done as a result of industry feedback to make the form easier to print, directly from the AFRL system.
Field 45
The revised list price/notional price of the vehicle on the day before the date on which the vehicle will be licensed and registered. This only needs to be added by the person registering the vehicle if the price has changed between the issue of the form and the registration of the vehicle. The revised list price/notional price should be provided in pounds and pence.
New versions of the V55 forms will be available for use from the beginning of October 2016. You can continue to use the old versions of the forms for registrations before the 1st of April and for non-M1 vehicles where the list price or notional price is not needed.
Registration by AFRL co-op The way in which the list price is provided by the various manufacturers’ AFRL systems will vary. Users of AFRL co-op systems will receive details from their manufacturers about how the list price will be recorded and any action needed.
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Registration by AFRL web The AFRL web service will also be changing. The list price/notional price will need to be provided as part of the vehicle data upload and the screens will change to allow for the revised list price/notional price to be entered when the vehicle is being registered.
A new field in the upload will be created called list/notional price; this will be field 62 and will come after ‘road friendly suspension’ and before ‘file name’. It will be a 9 byte field and the price will need to be provided as a positive numeric character in pence. The value must either be a space or a positive numeric character.
If you do not need to provide a list price for the vehicle i.e. non M1, then a space should be entered in field 62.
The vehicle upload screens, maintain vehicle details screen and registration screen will be amended to show the list price of the vehicle. The list price can be amended in the usual way by over typing the data and clicking the update button.
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When registering a vehicle, the vehicle registration screen will also change. The list price will be shown in the vehicle details section. This can be amended when the vehicle is being registered if the list price has changed between the vehicle details being uploaded and being registered.
All AFRL web documents will be amended to reflect the changes and will be reissued.
OOJ/16/046/1 8/16
VED reform Industry brief 2
DVLA Longview Road Morriston Swansea SA6 7JL
gov.uk/dvla
