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Higher rate VED. Part way through year
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.
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Comments
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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 time0
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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)
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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.3
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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)3
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Thanks all - I did look but I just couldn't find the answer on the interweb.0
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