Halifax company shares motor home tax fears with MP Holly Lynch

Holly Lynch MP (Labour, Halifax) meets Caravan Guard Managing Director Ryan Wilby (right) and Partnerships Director Neil Menzies (left) to discuss motorhome tax increases.

Motorhome insurance specialists, Caravan Guard, have met with Halifax MP Holly Lynch to raise their concerns about huge increases in Vehicle Excise Duty (VED) on new generation motorhomes and campervans.

New motorhomes with a Euro 6d/2 engine registered after September 1, 2019 are no longer subject to a commercial vehicle tax band.

The VED payable is now calculated in the same way as a car, despite much lower annual mileage, and has seen first registration fees increase by 705% - from £265 per year to up to £2135 in the first year. This is followed by a fixed annual fee of £465 for five more years.

Halifax-based Caravan Guard is concerned about the negative impact of this tax increase on the motorhome industry and urged their local MP Holly Lynch to support the National Caravan Council’s “Fair Motorhome Tax” campaign and to call on Parliament to review the tax in the new budget.

“The motorhome sector employs many people in the Yorkshire region, from manufacturers to suppliers and dealerships – not to mention the camping sites and tourism destinations which attract motorhomers from across the UK,” said Caravan Guard’s Managing Director Ryan Wilby.

“We have real concerns about the long-term, negative impact these tax increases could have on our industry, our future recruitment and our customers.

“We work closely with hundreds of UK motorhome dealerships who have experienced positive increases in motorhome sales over the last 10 years, which has led to growth of our motorhome insurance scheme. Customer feedback indicates that this tax is causing confusion and could reduce demand and be a barrier for those looking to experience the freedom of motorhome ownership.”

Holly Lynch MP has already raised her concerns in Westminster and has visited Halifax-based dealership Richard Baldwin Motorhomes to hear of their worries about reduced sales and the impact on the local economy.

"I’m very aware of the negative impact on local businesses and the economy in Halifax that these massive increases in vehicle excise duty will have and so I’ve encouraged the Government to rethink its approach,” said Holly.

“The tax hike on new motorhomes is creating a perverse incentive for people to buy motorhomes with older, dirtier engines whilst discouraging people from holidaying in the UK, instead using air travel. Neither of these approaches are good for the environment and so I have been working cross-party to urge the Government to arrive at a much fairer deal.”

The National Caravan Council (NCC) has been lobbying Parliament for many months and is calling on HM Treasury to reverse this tax in the forthcoming Budget process.