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Additional tax - second owner in first year
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I am looking to purchase an ex-demo car that was originally over £40k and was registered in Sept 2019.
I read that the additional tax of £320 was only due after the 1st year, but the dealership said that it also takes effect if sold within the first year.
Can anyone please clarify? I cannot find anything online to confirm this.
From https://www.gov.uk/vehicle-tax-rate-tables:
Vehicles with a list price of more than £40,000
You have to pay an extra £320 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000.
You only have to pay this rate for 5 years (from the second time the vehicle is taxed).
I read that the additional tax of £320 was only due after the 1st year, but the dealership said that it also takes effect if sold within the first year.
Can anyone please clarify? I cannot find anything online to confirm this.
From https://www.gov.uk/vehicle-tax-rate-tables:
Vehicles with a list price of more than £40,000
You have to pay an extra £320 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000.
You only have to pay this rate for 5 years (from the second time the vehicle is taxed).
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Comments
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Yea I think you will have to pay the £145 (assuming it's not an EV) + the £320 additional, so £465. That's the second year VED rate.
I believe the dealer will get a pro-rata refund, but that will be based on the second year rate (i.e. £465), not the first year rate. That will be anything from £0 - £2135 depending on the CO2.0 -
You only have to pay this rate for 5 years (from the second time the vehicle is taxed).
I think the wording of 'second time', not second year is crucial. The dealer taxed it when the car was registered, so you are taxing it for the second time, and pay whatever the second year VED rate is.0 -
Thanks DrEskimo. That makes sense, though not the news I was hoping for!0
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I can imagine...!
Apologies for being the bearer of bad news....0 -
I think the not totally unreasonable assumption is that if you can afford a £40k motor and it’s associated running costs, then you can probably afford the extra VED.
My last car was just shy of £500 a year and it was a 57 plate.
Sometimes you just have to suck it up to have/get what you want0
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