OFFICIAL: NO extra tax on VW defeat device cars in UK

Transport Minister Patrick McLoughlin has announced that owners of Volkswagen Group cars with defeat device will not have additional tax imposed.

Understandably, UK owners of VW Group cars and light commercials – from VW, Skoda, SEAT and Audi – are concerned to find their pride and joy wrapped up in a huge scandal that has seen VW admit to using defeat device software to scam emissions testing around the world.

But although the way VW has blatantly scammed the emissions tests is an unacceptably cynical move, it doesn’t make the cars that UK owners are driving any less able, or any less appealing, than they were before the scandal broke. At some point VW will come up with a fix for the cars and, although it may result in poorer performance and economy than before, the cars involved will still be good cars.

VW will doubtless have to compensate owners who bought VW Group cars based on the economy and emissions stated – which should see UK owners getting a cheque from VW at some point to soften the blow (unless regulators take the nuclear option of forcing VW in to a potential £100 billion buyback of cars) – but what about additional on-going costs?

Any compensation from VW will have to take in to account additional running costs, reduced resale value and poorer performance, but we’ve had emails from readers concerned that car tax (VED) and BIK (benefit in kind for business users) will increase once the VW cars have been re-tested. But that’s not going to happen.

Transport Minister Patrick McLoughlin has said:

Our priority is to protect the public and give them full confidence in diesel tests.
The Government expects VW to support owners of these vehicles already purchased in the UK and we are playing our part by ensuring no-one will end up with higher tax costs as a result of this scandal.

Now whether that means forcing VW to compensate owners for increased taxation costs once the real emissions of the defeat device cars are discovered, or whether it means the tax man allowing the affected cars to retain their existing certification levels for tax purposes, we’re not sure.

But at least it’s one less thing for owners of VW, SEAT, Audi and Skoda cars with the EA 189 engine in the UK to worry about.