Avoiding Road Taxes

With Sadiq Khan being re-elected many Londoners are going to be faced with an expanded ULEZ scheme in October. That means £12.50 per day for every day you use non-compliant vehicles within the North/South Circular. Perhaps you think that your vehicle will be compliant because it’s relatively new, but that is not the case for diesel cars. Petrol cars sold after 2005 are generally compliant but diesel cars that are not Euro-6 standard (registered since September 2015 mostly) are not.

You can check the taxes you pay in Congestion Charges and ULEZ charges in London for your current vehicle here: https://tfl.gov.uk/modes/driving/check-your-vehicle/

Personally I made the mistake of buying a diesel car in 2013 after the Government chose to exhort people to purchase them to cut CO2 emissions and car manufacturers such as Jaguar dropped most of their petrol models. With me doing relatively low mileage in recent years, and hardly any in the last year while we have been in lock-down, my vehicle would have lasted several more years. This retrospective legislation to penalise vehicles that were compliant with all emissions regulations when purchased is somewhat annoying to say the least.

If you live inside the North/South Circular you will have a difficult choice to make come October. Either buy a new compliant vehicle or trade-in for a second-hand one that is. You might consider an electric or hybrid vehicle for example.

But there are some other options. I happened to read an article published by Motoring Research recently on “What is a historic vehicle?” which intrigued me. Historic vehicles are those more than 40 years old. Such vehicles (except those used for commercial purposes) are exempt from the ULEZ and are also exempt from road tax (Vehicle Excise Duty).

In theory you could buy a restored classic car for a reasonable price and save a lot in tax. But you need to pick the vehicle carefully. Most “popular” cars more than 40 years old are likely to be full of rust and have very high mileages so they won’t be good buys. Classic cars such as E-Type Jaguars might be attractive but are now very expensive if well preserved. But there are other Jaguar models such as early XJs or 2.4 models that would be more practical. Parts would be readily available but maintenance costs might be high.

Having run some ancient and decrepit vehicles when I was younger, I am not particularly recommending this approach unless you are keen on classic cars and don’t need to use a vehicle every day.

It’s always amusing to watch the TV programme Bangers and Cash available on some channels. It’s very clear that the cost of restoring a beat-up vehicle is never recouped so buy a fully restored vehicle if you want a classic. And be careful on your choice. Vehicles that were unreliable and expensive to maintain when new will not have changed. While some models such as Jaguar E-Types are way too expensive for the average person.  

But there is another option which is to move to a ULEZ compliant vehicle that is not brand new. The car I owned before my current one was a Jaguar XJ8 registered in 2006 with petrol V8 engine and that is ULEZ compliant. See photograph above. This had an aluminium body so shouldn’t rust and you can pick a good one up for £12,000. This was a superb and spacious vehicle with all mod-cons. Perhaps I should simply go back in time and buy another? Or one can buy a low mileage Bentley Continental of a similar age for £25,000.  

If you want to go for something smaller and cheaper, look at Japanese cars which are generally reliable and Japan retained the love of petrol versus diesel. How about a one-owner Lexus GS 450H (a hybrid power train) with 66,000 miles on the clock for £7,500 advertised on AutoTrader if you want a luxury vehicle with a gesture to environmental soundness?

There are certainly some interesting and good quality vehicles that would enable you to avoid paying Sadiq Khan’s tax every day – at least for the present.  

Remember the ULEZ tax is about raising money for the Mayor’s empire, not about improving air quality where it will have minimal impact – see this page for the evidence: https://www.freedomfordrivers.org/environment.htm

Roger Lawson

Twitter: https://twitter.com/Drivers_London

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