Road tax when buying a demo

b17lboro

Hi trying to find out what I will have to pay for road tax as I have just purchased a demo (reg March 18). - emits 127g

As it’s already registered will I have to pay the new first year payment (as the dealer will,reclaim it back??)

Or will I just pay for the second year.

I went on gov.uk and because I haven’t got any of the reg docs I can’t get any details.

Any help appreciated, thanks

AdrianC

The first payment was made when the car was registered new, and the balance is refunded when the keeper changes, as with any other used car sale.



As the new keeper, you pay the second-payment-onwards amount, £140 (+£310 if new list with options was £40k+).


https://www.gov.uk/vehicle-tax-rate-tables

b17lboro

So isnt the DVLA loosing out? If a dealer sells the car and cashes in after a month and gets 11 months refunded, the new second buyer doesnt have to pay that 11 months? The second buyer pays year two ( which is a lot less than year one)!


Effectively the DVLA looses most of the new version of special car tax!

agrinnall

The dealer's not losing out much as they get the unused months back anyway, it's the DVLA that loses out as they don't get to keep the majority of the first year payment.

AdrianC

The 1st payment refund is pro-rata for the normal rate or the reduced rate, whichever is lower.


So for 127g/km and assuming <£40k list, the 1st payment rate is £165, while the 2nd payment rate is £140. The refund will be 1/12 of £140, for each unused month.


For 76-90g/km, the 1st payment is £105, so the refund would be 1/12 of £105 per month.