Luxury Car Tax

Dave_5150

Barkin said:

Dave_5150 said:

Barkin said:

Dave_5150 said:

Car_54 said:

Dave_5150 said:

You will paying an enhanced tax rate on a £40,000 car according to the GOV.UK check tax rates for new unregistered cars service.

https://www.gov.uk/check-tax-rates-new-unregistered-cars

No. It clearly says “more than” £40,000. 

So, £40,000.00 good, £40,000.01 bad.

Guess you didn’t follow the link which clearly states “New cars with a list price of £40,000 or more (other than those that run solely on electricity) will pay an additional rate for 5 years from the start of the second licence.”

The link provided also "clearly” states:

”Vehicles with a list price of more than £40,000

You have to pay an extra £390 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 do not have to pay this if you have a zero emission vehicle."

Just sayin'...

My point was the rules are confusing even on the website of the people that made the rules. 

Yet you're pretty adamant about which is correct...

I have no idea which is correct but if I was in the OP's position I would want to find out for sure from DVLA before finalising my purchase. 

BULLY

Grumpy_chap said:

It's very odd that Lexus (or any car manufacturer) would actually set a list price at exactly £40k given the VED thresholds. 
A list price of £39,999 would be far simpler in making that the car is below the threshold and would have some marketing clout I would assume also as it makes it clear to customers that the car is not subject to the surcharge so might be a plus point for a customer choosing between various makes.
Maybe Lexus simply don't expect to sell many at the £40k price once factors such as colour choice are considered.

Most of the colour options are free. I tried contacting Lexus direct but that was a waste of time.I will not be going ahead with purchase until i get a definitive answer  as seems 50/50  for the extra tax. Never known any other car maker to set their price exactly on the nose at 40k.Seems a bit bizarre to be honest.

facade

I'm on the fence. When the maximum speed limit is 40mph, 40mph is legal. 40.01 mph isn't., so you'd think that "above 40K" meant 40,000.00 is fine 40,000.01 you pay tax. But this is dot.gov, known for inaccuracies. You'd also think Lexus would price at £39,999.99 if 40K meant paying the tax...

Remember it is recommended retail price on the day of registration. If they haven't got your car in stock and Lexus increases the price before yours is taxed it would be liable for tax, even if you have a contract to buy at an agreed price.

uknick

BULLY said:

Grumpy_chap said:

It's very odd that Lexus (or any car manufacturer) would actually set a list price at exactly £40k given the VED thresholds. 
A list price of £39,999 would be far simpler in making that the car is below the threshold and would have some marketing clout I would assume also as it makes it clear to customers that the car is not subject to the surcharge so might be a plus point for a customer choosing between various makes.
Maybe Lexus simply don't expect to sell many at the £40k price once factors such as colour choice are considered.

Most of the colour options are free. I tried contacting Lexus direct but that was a waste of time.I will not be going ahead with purchase until i get a definitive answer  as seems 50/50  for the extra tax. Never known any other car maker to set their price exactly on the nose at 40k.Seems a bit bizarre to be honest.

Unless I missed it in a previous answer, why not ask the dealer to go online and register a dummy car with the value of the one you're looking at and then cancel the transaction once they get a figure for luxury car tax?  I'd have thought that would be small trouble in order to make a £40k sale.

RogerPensionGuy

I had nearly forgotten about this strange tax.

I was looking to buy a new car over the weekend and saw a few  cars that suited.

Unfortunately, I was on that 40K buffer and the ones I wanted with the spec I wanted were just over 40K, so to just replace a car with a more efficient car, hybrid I've decided on as EV just looks like too many negatives and unknowns for me.

So to buy a hybrid with same or more spec than my current car was always over 40K normally in the 42 to 44K range. 

My old car is 6 years old, low mileage and fully serviceable and only getting 15K and in the end, that luxury VED extra tax has made my mind up that I will keep current car.

I'll just keep that 30K in my investments ISA/SIPP.

It's funny that the car spec I was picking were going over 40K essentially because of extra safety spec items I have got used of having and just don't want to change car and not have these item.

Grumpy_chap

Fiscal drag means that the VED supplement now applies to quite normal family cars.

motorguy

Grumpy_chap said:

Fiscal drag means that the VED supplement now applies to quite normal family cars.

indeed.  Quite mundaine new cars are being hit with it.

born_again

uknick said:

BULLY said:

Grumpy_chap said:

It's very odd that Lexus (or any car manufacturer) would actually set a list price at exactly £40k given the VED thresholds. 
A list price of £39,999 would be far simpler in making that the car is below the threshold and would have some marketing clout I would assume also as it makes it clear to customers that the car is not subject to the surcharge so might be a plus point for a customer choosing between various makes.
Maybe Lexus simply don't expect to sell many at the £40k price once factors such as colour choice are considered.

Most of the colour options are free. I tried contacting Lexus direct but that was a waste of time.I will not be going ahead with purchase until i get a definitive answer  as seems 50/50  for the extra tax. Never known any other car maker to set their price exactly on the nose at 40k.Seems a bit bizarre to be honest.

Unless I missed it in a previous answer, why not ask the dealer to go online and register a dummy car with the value of the one you're looking at and then cancel the transaction once they get a figure for luxury car tax?  I'd have thought that would be small trouble in order to make a £40k sale.

No need for that. Dealers should sell enough car to know that info. 
Any dealer saying they are not sure. I would take as they know it will be in the higher tax bracket, but do not want to risk losing a sale..
Not that I'm cynical or anything 🤣

movilogo

Recently many people got stung by this as per several motoring motoring forums. 

If manufacturer's list price is over £40k on day of registration then you have to pay luxury car tax!

How much you actually paid to dealer or whatever dealer said are completely irrelevant. Some dealers are notorious to hide this fact from customers in order to get sales. 

Jaybee_16

movilogo said:

Recently many people got stung by this as per several motoring motoring forums. 

If manufacturer's list price is over £40k on day of registration then you have to pay luxury car tax!

How much you actually paid to dealer or whatever dealer said are completely irrelevant. Some dealers are notorious to hide this fact from customers in order to get sales. 

Main dealer I was buying from phoned me to give me the news and gave me the option to continue with the sale or cancel with deposit refunded.