Following the recent decision of the States of Deliberation to abolish motor tax, the Environment Department would like to advise the public of the transitional arrangements that will be put in place leading up to its cessation on 1st January 2008.

As it will no longer be possible to issue tax discs with an expiry date beyond 31st December 2007, it will be necessary to adjust future tax payments to reflect the outstanding period for which motor tax is due when new discs are issued.

Currently motorists are able to choose whether to tax a vehicle for a period of six or twelve months (see note 1). Under the revised arrangements, it will no longer be possible to tax a motor vehicle with a taxation date that expires on or after 31st January 2007 for a full twelve months as this would incur expenditure beyond the end of the current year.

In view of these changes and in order to ensure that motorists submit the correct sums when renewing motor tax up until the end of 2007, the Department is taking the opportunity to write to all motorists in advance of the tax renewal date for their vehicle(s) to advise them of the revised rates of tax chargeable for the remainder of the year.

The Department anticipates issuing approximately 5,000 letters per month up until the middle part of November. Those motorists with tax expiry dates between 31st January and 30th June 2007 (excluding motorcycle owners) will be given two payment options, namely:

• The outstanding taxation due for that vehicle up until the year end [THE PREFERRED OPTION], or
• Six months tax now, subject to the usual 50 pence surcharge, and then receive a further letter in due course regarding the outstanding tax due for the period up until the end of the year.

[Clearly it would be advantageous for all parties concerned if the outstanding tax is paid up until the end of the year in one simple payment.]

Those motorists with tax expiry dates between 31st July and 31st December 2007 will be sent a letter at the appropriate time requesting payment of the revised taxation fee chargeable up until the end of 2007.

Letters regarding the revised rates of tax chargeable for diesel motor vehicles will incorporate the additional duty recently levied by the States of Deliberation on diesel as part of the Budget debate and which became effective on 1st January 2007 (see note 2).

It should also be noted that all new or second hand vehicles registered between now and the end of the year will be subject to the usual rates of motor tax applicable up until 31st December 2007 (see note 3).

The public are reminded that it is their legal responsibility to ensure that a vehicle is properly taxed. Law enforcement officers will be checking vehicles throughout the year and will press for the prosecution of motorists seeking to evade payment of motor tax. These checks will be stepped up during the latter part of 2007.

Motorists are further reminded that all applications to renew motor tax must be accompanied by the vehicle log book, a valid insurance certificate and the correct fee.

Any further questions about motor tax, how much you should pay or how it will be phased out should be referred to the Driver and Vehicle Licensing Section of the Environment Department on 243400.

Notes: 
1. Motorcycles may only be taxed for a period of twelve months.
2. Tax on diesel motor vehicle fuel increased from £6.74 to £8.69 per cwt (hundredweight) with effect from 1st January 2007.
3. Motor Tax is payable for complete months, including the complete month during which the vehicle is first registered.