Budget 2008 and your MG

Firstly apologies to non UK readers as this is an important subject close to most UK members hearts and pockets. The Budget of 2008 has some very significant Vehicle Excise Duty (VED or road tax) changes affecting many of the modern MGs and here is a simplified format of the changes and how much it will cost you. There are in essence increased costs for this year 2008/9, but very significant changes for next year onwards, 2010/11.

Small Changes…

Firstly cars manufactured or registered before 1st January 1973. Classified as ‘Historic Vehicles’ see NO CHANGE.

Secondly vehicles made and registered after 1st January 1973 but before 1st March 2001 (i.e. before Y prefix registrations.) see small changes.

This group is split into two sub groups based on engine capacity, below 1549cc and above 1549cc.

Below 1549cc
For 2008/9 £120 (increase of £5)
For 2009/10 £120 (no change)

Above 1549cc
For 2008/9 £185 (increase of £5)
For 2009/10 £200 (increase of £15)

Note that the engine capacity is the one the car was originally registered with; so any subsequent engine change has no impact on the duty rates applicable. For example fitting a 1.4 engine in a car that originally had a 1.8 will not move the car to the lower tax band, and conversely neither would putting a 1.8 into a car originally built with a 1.4 change the group.

Major Changes…
Most change affects vehicles registered on or after 1st March 2001 (Y registration), which is when CO2 based registration commenced. Here there are seen some increases for 2008/9, most of which were set and published in the 2007 pre Budget report. The rates applicable for 2008/9 are shown in the below table.

Quick view of MG models, Bands and costs for JUST 2008/9…

Band C – £120

All MG ZR and ZS Turbo diesels

Band D – £145

MG ZR 105

All manual gearbox ZT diesels

Band E – £170

MGF 1.6i and 1.8i (registered on or after 1/3/2001)

MGF VVC (145 and 160ps versions registered on or after 1/3/2001)

MG TF 115

MG TF 135 (only after VIN RD 617391)

MG TF 160

MG ZR 120

MG ZR 160

MG ZS 110

MG ZS 120

MG ZT and ZT-T 120

Band F – £210

MGF Steptronic/Stepspeed (i.e. Auto gearbox and registered on or after 1/3/2001)

MG TF 120 Stepspeed

MG TF 135 (prior to VIN RD617391)

MG ZR 120 Stepspeed

MG ZS 120 Stepspeed

MG ZS 180

MG ZT and ZT-T 160 1.8T

MG ZT and ZT-T 135 diesel auto

MG ZT and ZT-T 160 V6

MG ZT and ZT-T 190 (if registered before 23/3/2006)

MG ZT and ZT-T 260 (if registered before 23/3/2006)

MG SV and SV-R (if registered before 23/3/2006)

Band G – £400
(Only for cars registered 23rd March 2006 or later)

MG ZS 180

MG ZT and ZT-T 180 (auto)

MG ZT and ZT-T 260

MG SV and SV-R

From 1st April 2009 the CO2 groups will be comprehensively changed and a simpler system introduced where EVERY car registered on or after 1st March 2001 will be simply placed in one of the new groups according to its homologated CO2 output. This removes the previous Band G commencement date of 23rd March 2006 and so places very many cars in the new upper bands that were previously in the old Band F. The new Bands are shown in the table overleaf (page 44) for both 2009/10 and 2010/11…

Quick view for MGs and Bands applicable for 2009/10…
(Price in brackets relates to 2010/11 rates that were also set with this Budget)