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Luxury vehicle tax question on new car.

Discussion in 'The UK and Ireland' started by Subevo, Jul 15, 2018.

  1. Subevo

    Subevo Member

    Joined:
    Sep 10, 2017
    Messages:
    86
    Location:
    Scotland
    just wondering is the £310 payable for the 1st 5 years then free afterwards .
    or is 1st year free then you pay for the next 5 years.
    Or is 1st years fee incorporated into price of car so 4 more years to pay £310.
    Sorry if it's a dumb question.
     
  2. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

    Joined:
    Jul 12, 2012
    Messages:
    6,939
    Location:
    Maine
    New vehicle tax rates from 1 April 2017

    I think that's clear that the #310 is for 5 years after the first year.

    But even more explicit:


    Vehicle tax rates

     
  3. Subevo

    Subevo Member

    Joined:
    Sep 10, 2017
    Messages:
    86
    Location:
    Scotland
    Thanks
    Also found this
    The Premium Rate (PR) applies to cars (including ULEVs and zero-emission vehicles) with a list price of £40,000 or more. The Premium Rate, which applies from the second year for five years, consists of the Standard Rate (with or without Alternative Fuel Discount) plus an additional £310, the rate reverting to the Standard Rate after five years.

    So in conclusion the 1st year is free then you pay £310 for a further five years.then Reverts back to standard rate which is currently zero .
     
  4. Terry_B58

    Terry_B58 Member

    Joined:
    Aug 31, 2017
    Messages:
    78
    Location:
    Lancashire. UK
    Throw a spanner in the works here.

    I believe that normally the first year is free, then the luxury tax is due annually for the next five years, as stated above BUT if the vehicle is sold/bought during the first year, say at 6 month old, the new owner then pays the luxury tax from that date.

    As the vehicle tax (zero) is cancelled when the vehicle is sold, the new owner needs to pay the vehicle tax for the remainder of the year (still zero), but the luxury tax then becomes due.

    I think owners have been caught out with this when buying 'nearly new' cars.
     

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