VED - New Car

molerat

https://forums.moneysavingexpert.com/discussion/6328903/premium-road-tax-and-a-changing-rrp#latest

tamste

So what is and isn't included in the manufacture's list price. I have seen various explanations of this which suggest that first registration fee and year one VED are excluded, but have not found anything on gov.uk that is definitive.

Asking as I am looking at buying a new car in the around £40k bracket and don't want to get hammered with the luxury car ved 

Grumpy_chap

tamste said:

I am looking at buying a new car in the around £40k bracket and don't want to get hammered with the luxury car ved 

In this situation, the prudent step is to follow the official advice and "Check the list price with your dealer so you know how much vehicle tax you’ll have to pay."
https://www.gov.uk/vehicle-tax-rate-tables

What you have to consider is the list price may change between placing order and the registration date, in which case I understand it is the latter list price that applies even if your actual purchase price is unchanged.  If that is correct (and I believe it is), then you'd be wise to leave some headroom between the ordered list price and the £40k point.

I suspect this will become a "stealth tax" and catch all cars before very long.  In 2017, list price for a Mondeo started around £22k and topped out at just under £30k:
https://comcar.co.uk/companycar/tax/history/Ford/Mondeo Hatch/17

Ford website today shows the Mondeo list price starting from around £27k and topping out at £36k:
https://www.ford.co.uk/content/dam/guxeu/uk/documents/price-list/cars/PL-Mondeo_2019.pdf

tamste

Thanks for the reply, but it's still not clear to me what is included. For example, I am looking at Volvo XC price list. For an example vehicle the list shows recommend retail of £38,655, a P11D value of £39,400 and an on the road price of £40,000. Which of these is the "list price" used for calculating the luxury car tax, or is it something else altogether?

tamste

Also, if the manufacturer rather than the dealer offers a discount, is it this manufacture's discounted price that should be used as that could be considered the "list price"?

400ixl

I don't believe either discount changes the list price. The list price is the cost before discounts.

The P11D is the list price as I understand it. The on the road price is the drive away price with the first years tax normally.

As other have mentioned the list price at the point of sale rather than order is used to calculate the tax I believe.

Keep_pedalling

tamste said:

So what is and isn't included in the manufacture's list price. I have seen various explanations of this which suggest that first registration fee and year one VED are excluded, but have not found anything on gov.uk that is definitive.

Asking as I am looking at buying a new car in the around £40k bracket and don't want to get hammered with the luxury car ved 

List price is base price plus anything fitted in the factory, OTR price adds first reg. VED and, I think, delivery costs.

Dealer provided parts such as mats should not fall in the list price either.

There are some very nice EVs around that price none of which are subject to luxury VED.