Unfair Premier VED on Vehicles

Casa27

A lot more people being caught with a Premier VED additional charge on List price values including VAT!!! on vehicles over £40000  which captures a lot of EV's as well, so.much for encouraging people to move to more energy efficient transportation and  effectively, taxing VAT, very questionable!!!

Ayr_Rage

That's life !

WellKnownSid

Buy something less expensive?

facade

There are plenty of new EVs below £40,000.

The real question is will "they" increase the threshold ever*, or will all new cars eventually become liable for "luxury car tax"? (Which "they" can re-name as "initial registration surcharge")

*Funny how the amount of tax you pay increases with some measure of inflation, but the threshold at which you start paying it doesn't.....

Bigphil1474

So any new car that is £33k ish plus VAT is included? Sounds low, but not sure it's unfair as such given it's optional. Most expensive car I've ever bought was £10k and nearly 3 years old. 

diveunderthebonnet

Bigphil1474 said:

So any new car that is £33k ish plus VAT is included? Sounds low, but not sure it's unfair as such given it's optional. Most expensive car I've ever bought was £10k and nearly 3 years old. 

Does the list price of a new car not include VAT ?

Mildly_Miffed

diveunderthebonnet said:

Bigphil1474 said:

So any new car that is £33k ish plus VAT is included? Sounds low, but not sure it's unfair as such given it's optional. Most expensive car I've ever bought was £10k and nearly 3 years old. 

Does the list price of a new car not include VAT ?

Yes.

In fact, it's illegal to quote prices to consumers that aren't VAT inc, unless you're very clear it's +vat and the price is primarily aimed at business buyers.

Yes, the £40k threshold's not changed in the eight years this has been a thing... but surely the very fact that it's been a thing for EIGHT years says it shouldn't really come as a surprise?

Anyway, if you're buying a £40k+ car, is £1,640 (if you keep the car for the full five years) really something that's going to be a showstopper?