Luxury car tax on ex demonstrator
Discussion
I will be picking up a new to me ex EV demonstrator 1st April.
I am aware that as the original value is over £50k, from the 2nd years tax I will have to pay Rachel's luxury car tax supplement of circa £400 per annum. The car is currently 5 months old and will be 1 year old in Oct when the 2nd year car tax kicks in.
What I can't fathom is what rate I will pay from April 1st until Oct 1st?
The initial luxury car tax was paid by the garage upon registration so will I just pay the basic £190 pa until October?
Even the garage can't tell me what the tax will be until we set up the payment on the 1st.
I am aware that as the original value is over £50k, from the 2nd years tax I will have to pay Rachel's luxury car tax supplement of circa £400 per annum. The car is currently 5 months old and will be 1 year old in Oct when the 2nd year car tax kicks in.
What I can't fathom is what rate I will pay from April 1st until Oct 1st?
The initial luxury car tax was paid by the garage upon registration so will I just pay the basic £190 pa until October?
Even the garage can't tell me what the tax will be until we set up the payment on the 1st.
JurassicGTS said:
I will be picking up a new to me ex EV demonstrator 1st April.
I am aware that as the original value is over £50k, from the 2nd years tax I will have to pay Rachel's luxury car tax supplement of circa £400 per annum. The car is currently 5 months old and will be 1 year old in Oct when the 2nd year car tax kicks in.
What I can't fathom is what rate I will pay from April 1st until Oct 1st?
The initial luxury car tax was paid by the garage upon registration so will I just pay the basic £190 pa until October?
Even the garage can't tell me what the tax will be until we set up the payment on the 1st.
Nope, unfortunately you'll pay the ECS (expensive car supplement) from 1/4/26 through to 1/4/30. I am aware that as the original value is over £50k, from the 2nd years tax I will have to pay Rachel's luxury car tax supplement of circa £400 per annum. The car is currently 5 months old and will be 1 year old in Oct when the 2nd year car tax kicks in.
What I can't fathom is what rate I will pay from April 1st until Oct 1st?
The initial luxury car tax was paid by the garage upon registration so will I just pay the basic £190 pa until October?
Even the garage can't tell me what the tax will be until we set up the payment on the 1st.
From here - https://www.gov.uk/guidance/vehicle-tax-for-electr...
Gov said:
New electric and zero emission vehicles registered on or after 1 April 2025 with the list price exceeding £40,000 attract the standard rate, plus the expensive car supplement for the first 5 years from the start of the second licence.
Sheepshanks said:
JurassicGTS said:
But is the start of the 2nd licence April or Oct the 1st anniversary as the first year should be covered by the initial £2k or so paid when first registered.
April. If you buy whole years tax then the car will have a part year of the supplement at the end.stemll said:
Sheepshanks said:
JurassicGTS said:
But is the start of the 2nd licence April or Oct the 1st anniversary as the first year should be covered by the initial £2k or so paid when first registered.
April. If you buy whole years tax then the car will have a part year of the supplement at the end.Sheepshanks said:
The part year will be at the end of the ECS period so the April 2030 renewal will have a few months of supplement included to take it to Oct 2030.
I will let you all know on 1st April, but guessing I will be shafted regardless.Fortunately the car has depreciated 42% from its October 2025 list price with just 2,000 miles so I am quids in anyway
JurassicGTS said:
I will let you all know on 1st April, but guessing I will be shafted regardless.
Fortunately the car has depreciated 42% from its October 2025 list price with just 2,000 miles so I am quids in anyway
In the great scheme of things it's not exactly a shafting, you're just having to pay what would normally be the 2nd yr tax 6 mths early.Fortunately the car has depreciated 42% from its October 2025 list price with just 2,000 miles so I am quids in anyway
If it wasn't an EV the first registration fee would have been immense so you'd have saved that - but for an EV it's only a tenner.
We normally buy new cars but bought wife a nearly-new SUV in Covid as new lead time was huge - it never occured to me I'd have to pay separately to tax it, rather than it being wrapped up in the OTR price. I'd have tried to get it covered in the deal if I'd realised.
Steve-B said:
Shafting 2nd owners seems seriously like extra taxation doesn't it?
Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
Yes, I was screwed with extra taxation before 'this lot' were in power. Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
I did know that before I bought it so I suppose I can't complain, but it still doesn't seem fair!
It's not just 2nd owners, it's anyone who buys a car that was originally sold for over 40k, within the first 6 years of it's life.
Edited by Yellow Lizud on Thursday 26th March 11:57
Steve-B said:
Shafting 2nd owners seems seriously like extra taxation doesn't it?
Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
It’s been the same since the luxury car payment was introduced, so nothing to do with this lot. It should have moved with inflation at least, but with everything else frozen that’s not going to happen any time soon. With the huge inflation in car prices over the last 5/6 years 40k buys you nothing more than an average spec large family carConsider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
martinbiz said:
It s been the same since the luxury car payment was introduced, so nothing to do with this lot. It should have moved with inflation at least, but with everything else frozen that s not going to happen any time soon. With the huge inflation in car prices over the last 5/6 years 40k buys you nothing more than an average spec large family car
Unless it is an EV, I think this goes up to £50k next week.Steve-B said:
Shafting 2nd owners seems seriously like extra taxation doesn't it?
Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
I recall being really miffed when I first got a company car - it was someone else's cast off and I had to pay BIK based on its new value.Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
But as for the originally £55K car, I guess you could say all of its costs, servicing, insurance, tyres, fuel etc, are going to continue to be appropriate to a £55K car, so there's no logical reason why car tax shouldn't too. It's those ongoing high costs that make them secondhand bargains.
Steve-B said:
Shafting 2nd owners seems seriously like extra taxation doesn't it?
Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
It seems marginally more reasonable than the circa £800 that some 20 year old cars are stuck with forever. Consider buying a £55K 2023 car, in 2026 at £30K, you're still screwed with extra taxation.
Just how this current lot stays in office is beyond me.
My feeling is it should all be loaded onto the purchase price, not have an arbitrary number of years to string it out over.
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