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Higher rate VED. Part way through year

alanfp
alanfp Posts: 173 Forumite
Part of the Furniture 100 Posts Combo Breaker
edited 24 October 2023 pm31 5:39PM in Motoring
I'm thinking of buying a car that's 3 yrs and 9 months old. The car was more than £40k when new. I am told that the VED is £560 until it is 6 yrs old. So when it's 5 yrs and 9 months old, could I pay for just 6 mths at the higher rate? Or can I pay for 3 mths and then re-set when the car is 6 yrs old. Has anyone been in this position and how did it play out. I don't want to be paying 12mths in  2 yrs time at the higher rate when for 9 months it will be beyond the 6 yr age.

Comments

  • GrumpyDil
    GrumpyDil Posts: 1,919 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Combo Breaker
    You have to buy 6 or 12 months tax at a time. I would tax for 6 months and then cancel and retax once the rate had dropped. That is unless the tax at 5 years 9 months reflected the differing rates for that time 
  • facade
    facade Posts: 7,388 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 25 October 2023 am31 6:14AM
    I'm sure there has been a thread on this before, but I can't remember the outcome.
    Either you go for the monthly Direct Debit tax for the final year and the rate changes when the car hits 6, or the tax for year 6 is actually calculated as 3 months at the higher and 9 at the normal rate.

    Either way, the keeper isn't ripped off by DVLA, which surprised me!
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science ;))
  • uknick
    uknick Posts: 1,731 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    HMRC automatically reduce the luxury element so you only pay for the months you should.  Happened to me this year when they only took the 9 months due. 
  • lemondrops69
    lemondrops69 Posts: 352 Forumite
    100 Posts Second Anniversary Name Dropper Photogenic
    edited 25 October 2023 am31 11:57AM
    I've just had this. Its £525-ish for years 2-6 then it goes down to the normal amount, for me £180. I bought a car which was 2 month off being six years old, but i only paid the higher rate for the 2 months and it automatically reduces to the £180 per year. So in your case you'd pay 3 months at the higher rate and then it drops down to the new rate. If you sorn'd it for 3 months you'd pay the lower rate when you came to tax it (note for pedants, yes I said tax and know its VED but dont care)
  • alanfp
    alanfp Posts: 173 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks all - I did look but I just couldn't find the answer on the interweb.
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