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‘Expensive car’ supplement question
I’m buying a used car that will be subject to the ‘expensive car’ supplement. It’s 6 months old, and the supplement should be years 2-6. I’m wondering whether DVLA will automatically adjust? I’m thinking about doing monthly DD. Dealership didn’t know! Many thanks for any knowledge on this 😊
Comments
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You will pay the supplement straight away. While for simplicity many people refer to it being due in years 2-6, the actual regulation says:
"The expensive car supplement is paid in addition to the standard rate for a period of five years from the start of the second vehicle licence but for a period of no longer that six years from when the vehicle was first registered."
The key phrase is 'second vehicle license'. As you are buying the car and VED is not transferable, you are buying the second licence and so need to pay the supplement straight away.
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Thank you, that makes sense. So, does that mean I pay it for 5 years from when I get the car and then it will cease? I accept it has to be paid, just wondering whether DVLA will now charge for 5 1/2 years!
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You'll pay it to the end of the 5th year from now.
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It's payable every time the car is taxed after the first, when it's brand spankin' new, until it hits the date shown on vehicleenquiry.service.gov.uk
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I've just unintentionally fallen into this trap with a 22 plate that I picked up on Saturday (ouch)
If you go on the gov website and do the tax check, it gives a date where the rate reduces
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