it applies for all licences bought on or after the 1st of April irrespective of date of first reg. no ball kicking required
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Luxury Car Tax RIP - Budget 2020
- Thread starter Jason71
- Start date
Vehicle Excise Duty rates for zero-emission vehicles
Any EV bought since 2017, which is basically everyone here.
Any EV bought since 2017, which is basically everyone here.
My car is arriving 26th March so will be hit with one year’s worth of this tax of £340 - but I’m sure if I try and delay delivery to 1st April I lose the car as Tesla needs the sale to be prior to 31 March. So I will just take the £340 on the chin.
You won't need to take anything on the chin. You don't pay it in the first year.
Where do you get £340 from? I thought the first year was based solely on CO2 and is therefore £0.
Even if you did you could just leave it on the drive, apply for SORN and register it 5 days later. The question is how do you get it home.
also if you were paying it its £320 (£325 after April 1st)
actually you could not do that. first year VED has to be paid on registration and is not refundable in quite the same way as normal VED. But this is all irrelevant anyway since the first year is free anyway as people have pointed out
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I think this is definitive. If the car was registered from 6 April 17 onwards, there is no tax, (or no further tax, if you had to pay tax for any period before 6 April 2020). Runs up to 5 April 2025.
Personally, I will save 5 years of it, so I am very happy!
This link is definitive and clears it all up, thanks
EDIT: beaten by seconds
Good for me because I'm buying outright, so would've suffered this, but I presume you guys that are leasing might want to try and renegotiate if you can before delivery?
Yes, you never paid anything in year One. But the exemption runs out on 5 April 2025, so I think you may have something to pay in and for Year 6? Of course, they may extend the exemption later.
No need, the tax is Years 2 to 6. Never was a tax in Year 1. You may have some tax in Year 6 if that extends beyond 6 April 2025.
not sure. It says:
"
Operative date
The change in the law will apply from 1 April 2020. This change will apply to all zero-emission vehicles registered from 1 April 2017 until 31 March 2025.
"
that suggests that the 2025 date is actually a date of registration in which case all EV's registered between now and then will not have to pay it ever.
however the financial impact only goes out to 2025 which implies it a licence date. if it was a registration date the impact would go to 2031.
It seems ambiguous if the exemption from luxury car tax is until the 31st March 2025 OR for vehicles registered up until the 31st of March 2025
if its the former ( and I think it is) Do we all need to do is to SORN our vehicles on 1st April 2020 and re-buy. this will bring forward the start of the tax to 1st of April 2020 so by the time the exemption runs out in 2025 we will all have burned through our 5 year payment period.
i.e. currently the tax will be payable on my car from the second licence due in November 2020 for 5 years so up until November 2025.
So the last licence that it applies to will be bought in November 2024 and run to November 2025. So on that licence will they charge me for the period April 2025 onwards? or will it all be zero because I bought it before April 2025?
I don't know but if I sorn it and re-tax on April 1st it will bring the end date of the tax back to April 25 which means I am covered either way.
if its the former ( and I think it is) Do we all need to do is to SORN our vehicles on 1st April 2020 and re-buy. this will bring forward the start of the tax to 1st of April 2020 so by the time the exemption runs out in 2025 we will all have burned through our 5 year payment period.
i.e. currently the tax will be payable on my car from the second licence due in November 2020 for 5 years so up until November 2025.
So the last licence that it applies to will be bought in November 2024 and run to November 2025. So on that licence will they charge me for the period April 2025 onwards? or will it all be zero because I bought it before April 2025?
I don't know but if I sorn it and re-tax on April 1st it will bring the end date of the tax back to April 25 which means I am covered either way.
Maybe. But any Government can change it at any time. Also, Government can always decide later that it meant something that it probably never did!
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