2006 tax rate change
Author
Discussion

ingenieur

Original Poster:

4,653 posts

210 months

Wednesday 2nd November 2022
quotequote all
Got a question about the dodgy period where some pretty normal cars had very expensive road tax.

I think it kicked in 26th March 2006 if I remember rightly... anyway...

Question is, do they calculate the tax by the date of first registration or by the date of vehicle manufacturer?

sherman

15,222 posts

244 months

Wednesday 2nd November 2022
quotequote all
Registration date iirc.
You can get the same model with 2 different taxes. I remember Rx8s had this. The same spec but £400 more in tax for a car built one day the wrong side of a date.

2 sMoKiN bArReLs

32,007 posts

264 months

Wednesday 2nd November 2022
quotequote all
sherman said:
Registration date iirc.
You can get the same model with 2 different taxes. I remember Rx8s had this. The same spec but £400 more in tax for a car built one day the wrong side of a date.
wobble

Those facts conflict biggrin

Muddle238

4,417 posts

142 months

Wednesday 2nd November 2022
quotequote all
I occasionally browse for X350 XJ8s, however I set the date cutoff at 2005 purely to avoid the higher tax bracket. £330 or so for a V8 barge seems like a bargain to me.

samoht

7,218 posts

175 months

Wednesday 2nd November 2022
quotequote all
https://www.gov.uk/vehicle-tax-rate-tables/rates-f...

gov.uk said:
Band K*: 201 to 225g/km £360
'*Includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006.
Band M: Over 255g/km £630
Fairly straightforward, cars first registered before 2006-03-23 are capped at Band K, currently £360. Cars registered after that may be up to Band M, £630 at present.

A given model (e.g. Mazda RX-8) whose production run straddled the changeover date will have different tax rates for examples registered before or after it.

However once a given example is registered, the tax band is fixed.

The spinner of plates

18,084 posts

229 months

Wednesday 2nd November 2022
quotequote all
2 sMoKiN bArReLs said:
sherman said:
Registration date iirc.
You can get the same model with 2 different taxes. I remember Rx8s had this. The same spec but £400 more in tax for a car built one day the wrong side of a date.
wobble

Those facts conflict biggrin
Yup hehe

-#DIV/0! error!

sherman

15,222 posts

244 months

Wednesday 2nd November 2022
quotequote all
The spinner of plates said:
2 sMoKiN bArReLs said:
sherman said:
Registration date iirc.
You can get the same model with 2 different taxes. I remember Rx8s had this. The same spec but £400 more in tax for a car built one day the wrong side of a date.
wobble

Those facts conflict biggrin
Yup hehe

-#DIV/0! error!
Rather than being a prick. You explain it better.

Skyedriver

23,397 posts

311 months

Wednesday 2nd November 2022
quotequote all
Boxster S £360/£600

2 sMoKiN bArReLs

32,007 posts

264 months

Wednesday 2nd November 2022
quotequote all
sherman said:
The spinner of plates said:
2 sMoKiN bArReLs said:
sherman said:
Registration date iirc.
You can get the same model with 2 different taxes. I remember Rx8s had this. The same spec but £400 more in tax for a car built one day the wrong side of a date.
wobble

Those facts conflict biggrin
Yup hehe

-#DIV/0! error!
Rather than being a prick. You explain it better.
Easy Tiger! Just a bit of ribbing you know! We all post gibberish really. Explanation is as above.

thumbup

GR86

710 posts

125 months

Wednesday 2nd November 2022
quotequote all
350z had this and I think there was a sweet spot where you could get an AP2 S2000 with lower tax.

The Rotrex Kid

34,775 posts

189 months

Wednesday 2nd November 2022
quotequote all
GR86 said:
where you could get an AP2 S2000 with lower tax.
In an already pedantic thread, just to carry on the theme, the UK never had an AP2 S2000, they were all AP1 Chassis. wink

Tommo87

5,457 posts

142 months

Wednesday 2nd November 2022
quotequote all
It’s definitely date of registration.

I have seen late register outgoing models being hit with the tax, when a car with an identical build date has scraped through.

martin mrt

3,883 posts

230 months

Wednesday 2nd November 2022
quotequote all
The changes came into play on 23-3-06

Cars such as Golf R32s BMW M3s the aforementioned Rx8s etc were all affected by the change

Basically anything registered on or prior to 22-3-06 fell into the lower bracket

Anything on or after 23-03-06 was in the higher bracket until relatively recent (4-5 years ago) reviews which based it on the on the road price of the car including options iirc

Slow

6,973 posts

166 months

Wednesday 2nd November 2022
quotequote all
martin mrt said:
Cars such as Golf R32s BMW M3s the aforementioned Rx8s etc were all affected by the change

Range Rover L322 as well.

Mr Tidy

31,418 posts

156 months

Wednesday 2nd November 2022
quotequote all
That change was made retrospectively by Gordon Brown in 2009 - the git! mad

It didn't do anything for sales of so many great cars like S2000s, 350/370Zs, RX8s among others.

Second Best

6,534 posts

210 months

Thursday 3rd November 2022
quotequote all
I remember this topic back from 2010-2012 when E46 M3s were depreciating a lot. One of the members on here was complaining about his 2006 E46 M3 and a few folks couldn't understand why - until we realised it was because the tax was double that of an M3 registered six months earlier.

Again, going from memory, the car was built in 2005 but registered in 2006, hence was hit by the spenny tax. I'm sure I remember a short period where 2005 M3s and 911s etc were actually commanding a (small) premium over 2006 ones because they had cheaper tax rates.


Saleen836

12,497 posts

238 months

Thursday 3rd November 2022
quotequote all
Did this not start earlier than 2006?
I remember Peugeot 106 GTis were different tax rates if they were registered up to Feb 28 2001, something like £100 a year cheaper than an identical model registered a day later

Edited by Saleen836 on Thursday 3rd November 08:22

samoht

7,218 posts

175 months

Thursday 3rd November 2022
quotequote all
Saleen836 said:
Did this not start earlier than 2006?
I remember Peugeot 106 GTis were different tax rates if they were registered up to Feb 28 2001, something like £100 a year cheaper than an identical model registered a day later
Yes, the above system of bands was introduced on 1st March 2001, cars registered before that have two bands based on engine size, up to 1549cc is £180, over 1549cc is £295.

A 106 GTi has an engine just into the larger bracket so would be £295 for older cars, and states 201 g/km CO2 so Band K and £360 for newer examples.

It's worth noting that all personal imports from outside the EU still fall under the capacity system, since they don't have homologated emissions figures. So even say a 2012 import pays no more than the £295 rate, regardless of CO2 emissions.



There's yet another cutoff on 1st April 2017 when it went to a price based system with the £40k threshold, with similar discontinuities.

Retro.74

322 posts

52 months

Thursday 3rd November 2022
quotequote all
The Rotrex Kid said:
GR86 said:
where you could get an AP2 S2000 with lower tax.
In an already pedantic thread, just to carry on the theme, the UK never had an AP2 S2000, they were all AP1 Chassis. wink
I used to have the 2006 face-lift S2k (DBW, V2 wheels, Bermuda blue etc). Unfortunately that was registered March 26th so I was stung on the tax. It only came out in summer anyway so didn't stop me from buying it.
A small number with this revision got registered prior 22nd March, so would be the ones to have if you could find one, though 2004 was probably the most significant revision and still plenty of them around with cheaper tax.

ingenieur

Original Poster:

4,653 posts

210 months

Thursday 3rd November 2022
quotequote all
Are we all totally sure about it being the date of registration?

I own a classic which I bought before they reinstated the rolling 40 year historic tax exemption (created it, to be precise... it used to be 25 years!) and because the car had to be over a certain age to qualify for historic tax the previous owner requested an age related plate. He swapped it from M-reg 1973 to L-reg 1972. That's because the car was made in 1972 but not registered until 1973.