Luxury Car Tax

BULLY

Hi, i am thinking of buying a  new car (not an EV) with a list price of exactly £40000.The actually purchase price is approx 10% less.(no extras) I queried the Luxury car tax with the dealer but they have told me there is no luxury car tax applicable but i thought i read before that Luxury car tax is for cars costing £40000 and above?  (edited)

Keep_pedalling

It does not apply to zero emission cars, but if you are not buying an EV then you get hit with the extra tax for 5 years.

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

Car_54

According to gov.uk it’s OVER £40,000, not £40k and above.

400ixl

It is over £40k rather than £40k and over.

What does that £40k price include as there are multiple elements that get included?

Does it include an options and the delivery costs for example? If not, those need adding. If it also includes things like the first years road tax then that can be removed from the calculation.

I would be going through it closely to make sure that all of the elements that make up the cost elements have been included. Dealers don't always have a great record of being the right side of £40k.

Grumpy_chap

BULLY said:

Hi, i am thinking of buying a  new car with a purchase price of exactly £40000.
I queried the Luxury car tax with the dealer but they have told me there is no luxury car tax applicable but i thought i read before that Luxury car tax is for cars costing £40000 and above? 

Is the price you are paying £40k, or is that the list price?
It is the list price that determines whether the tax supplement applies.
EV's are currently exempt from the tax supplement so that might be a consdieration

daveyjp

And its list price on first registration, so be wary if there is a lengthy lead in time for delivery.

born_again

Keep_pedalling said:

It does not apply to zero emission cars, but if you are not buying an EV then you get hit with the extra tax for 5 years.

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

https://www.gov.uk/vehicle-exempt-from-vehicle-tax

EV exempt..👍

BULLY

Hi, everyone.Thanks for the replies..appreciated.

The exact retail price of the Lexus ES300h Premium Edition is £40,000,  however i would be paying almost 4k lower than that..i just want to make sure of no unpleasant surprises down the line regarding extra tax.I am not getting any extras with the Lexus.Not an EV, tried that last 3 years..not for me.

BULLY

daveyjp said:

And its list price on first registration, so be wary if there is a lengthy lead in time for delivery.

Good point.Thank you

BULLY

400ixl said:

It is over £40k rather than £40k and over.

What does that £40k price include as there are multiple elements that get included?

Does it include an options and the delivery costs for example? If not, those need adding. If it also includes things like the first years road tax then that can be removed from the calculation.

I would be going through it closely to make sure that all of the elements that make up the cost elements have been included. Dealers don't always have a great record of being the right side of £40k.

Price quoted  includes

• On-the-road price
• 12 months road tax
• Brand new unregistered car
• VAT
• Number plates
• Full UK manufacturer warranty

ontheroad1970

BULLY said:

Hi, everyone.Thanks for the replies..appreciated.

The exact retail price of the Lexus ES300h Premium Edition is £40,000,  however i would be paying almost 4k lower than that..i just want to make sure of no unpleasant surprises down the line regarding extra tax.I am not getting any extras with the Lexus.Not an EV, tried that last 3 years..not for me.

It's the list price that counts, not what you get it discounted to.  Though looks like you may be ok, just.