VED - “luxury” car tax - part year?
Discussion
Looking at 2019/2020 cars (all just over £40k when new I think).
Anyway, I am aware that they incur for 5/6 years the additional £410 ved.
What I can’t work out is what happens when you buy a car part way through the year (from car’s registration)?
I.e is it as an obviously that’s if 5.5 years old, is the tax (£190 std) + £205 (i.e. half of £410)?
Or does owner pay whole year additional and no part-refund if sell partway through year?
One car I am looking at is an early 2020 model, so has it 1 year left of additional, or 1.5yrs?
So, if I get a 2019 model (say early 2019), I’ve only a few months of the additional charge?
Anyway, I am aware that they incur for 5/6 years the additional £410 ved.
What I can’t work out is what happens when you buy a car part way through the year (from car’s registration)?
I.e is it as an obviously that’s if 5.5 years old, is the tax (£190 std) + £205 (i.e. half of £410)?
Or does owner pay whole year additional and no part-refund if sell partway through year?
One car I am looking at is an early 2020 model, so has it 1 year left of additional, or 1.5yrs?
So, if I get a 2019 model (say early 2019), I’ve only a few months of the additional charge?
Alex Z said:
I’m sure I remember this being asked before and someone saying that they were only charged the higher rate for the months till the car hit 5.
I think this may be the thread you refer tohttps://www.pistonheads.com/gassing/topic.asp?h=0&...
cuprabob said:
Alex Z said:
I’m sure I remember this being asked before and someone saying that they were only charged the higher rate for the months till the car hit 5.
I think this may be the thread you refer tohttps://www.pistonheads.com/gassing/topic.asp?h=0&...
I’ve just bought a 2021 A4 avant and shelled out an eye watering £600 for the year. The higher rate is only for 5 years from the 2nd year the car is registered so I’ll be on the hook for this year and next and it will drop back to the lower rate.
It’s a ridiculous penalty just because a car had a brand new price of over £40k. Bad enough that we have no idea the actual benefits of the tax, sorry “VED” as it is but some f
ker managed to get this approved. Boils my piss. Even more when you buy the car at nearly half the price of what it was new.
All dealers should price everything at £39,999 out of spite then make some add on service compulsory to make up the difference and roll it all into a finance deal. Get me a seat in that there commons. I’ll sort them right out!
It’s a ridiculous penalty just because a car had a brand new price of over £40k. Bad enough that we have no idea the actual benefits of the tax, sorry “VED” as it is but some f
ker managed to get this approved. Boils my piss. Even more when you buy the car at nearly half the price of what it was new. All dealers should price everything at £39,999 out of spite then make some add on service compulsory to make up the difference and roll it all into a finance deal. Get me a seat in that there commons. I’ll sort them right out!
Davie_GLA said:
I’ve just bought a 2021 A4 avant and shelled out an eye watering £600 for the year. The higher rate is only for 5 years from the 2nd year the car is registered so I’ll be on the hook for this year and next and it will drop back to the lower rate.
It’s a ridiculous penalty just because a car had a brand new price of over £40k. Bad enough that we have no idea the actual benefits of the tax, sorry “VED” as it is but some fker managed to get this approved. Boils my piss. Even more when you buy the car at nearly half the price of what it was new.
All dealers should price everything at £39,999 out of spite then make some add on service compulsory to make up the difference and roll it all into a finance deal. Get me a seat in that there commons. I’ll sort them right out!
The dealers can’t unfortunately. It’s the rrp so the dealer can’t discount to 39999.It’s a ridiculous penalty just because a car had a brand new price of over £40k. Bad enough that we have no idea the actual benefits of the tax, sorry “VED” as it is but some f
ker managed to get this approved. Boils my piss. Even more when you buy the car at nearly half the price of what it was new. All dealers should price everything at £39,999 out of spite then make some add on service compulsory to make up the difference and roll it all into a finance deal. Get me a seat in that there commons. I’ll sort them right out!
It’s the OEM’s issue.
Davie_GLA said:
I’ve just bought a 2021 A4 avant and shelled out an eye watering £600 for the year. The higher rate is only for 5 years from the 2nd year the car is registered so I’ll be on the hook for this year and next and it will drop back to the lower rate.
It’s a ridiculous penalty just because a car had a brand new price of over £40k. Bad enough that we have no idea the actual benefits of the tax, sorry “VED” as it is but some fker managed to get this approved. Boils my piss. Even more when you buy the car at nearly half the price of what it was new.
All dealers should price everything at £39,999 out of spite then make some add on service compulsory to make up the difference and roll it all into a finance deal. Get me a seat in that there commons. I’ll sort them right out!
Think yourself lucky! It’s a ridiculous penalty just because a car had a brand new price of over £40k. Bad enough that we have no idea the actual benefits of the tax, sorry “VED” as it is but some f
ker managed to get this approved. Boils my piss. Even more when you buy the car at nearly half the price of what it was new. All dealers should price everything at £39,999 out of spite then make some add on service compulsory to make up the difference and roll it all into a finance deal. Get me a seat in that there commons. I’ll sort them right out!
My 2006 BMW Z4M cost £695 to tax in March. It would be £735 now, and being in Band M will never go down.
It's crazy isn't it! Can anyone actually tell me what this levy does? I can understand if it is going towards roads, schools, sanitary etc. but as far as i can see there's an air of "well if you can afford a car that was worth that at some point then you can afford this"......
Case in point being the Z4. Why? Emmissions? I can buy an RS6 that will be the same to tax but cost way more to fuel and no amount of fancy measures to reduce planet killing smoke will make up for having to use more of the fuel from the get go.
THink of the dinosaurs!
Case in point being the Z4. Why? Emmissions? I can buy an RS6 that will be the same to tax but cost way more to fuel and no amount of fancy measures to reduce planet killing smoke will make up for having to use more of the fuel from the get go.
THink of the dinosaurs!
P700DEE said:
My 68 plate G31 BMW was over £40k new so subject to the elevated rate for the first five years. It will be 6 years old in September and when my tax renewed in April I had to pay a pro rata tax to cover the remaining year 5-6.
What does that mean? I simply thought that for year 6 it reverted to "normal" tax amount. I had a volvo S60 T5 (RIP) before this audi and it was £570 then defaulted to £170 for (or so i thought) for year 6? In fact i think it's 5 years from the *second* year the car is registered so you are paying the stupid new car tax if you're buying brand spanking for year one, then the made up tax amount for the next 5 years? So in reality you are looking at a car that is 7 years old for "cheap" tax if the car was worth £40k new.
Show me any mainstrain car that hasn't depreciated to 30% of it's new at least by year 7?
Disclaimer: Counting isn't my strong point
Davie_GLA said:
P700DEE said:
My 68 plate G31 BMW was over £40k new so subject to the elevated rate for the first five years. It will be 6 years old in September and when my tax renewed in April I had to pay a pro rata tax to cover the remaining year 5-6.
What does that mean? I simply thought that for year 6 it reverted to "normal" tax amount. I had a volvo S60 T5 (RIP) before this audi and it was £570 then defaulted to £170 for (or so i thought) for year 6? In fact i think it's 5 years from the *second* year the car is registered so you are paying the stupid new car tax if you're buying brand spanking for year one, then the made up tax amount for the next 5 years? So in reality you are looking at a car that is 7 years old for "cheap" tax if the car was worth £40k new.
Show me any mainstrain car that hasn't depreciated to 30% of it's new at least by year 7?
Disclaimer: Counting isn't my strong point
What is mainstrain?
fflump said:
You’re looking at a 6year old car for cheap tax not 7. Tax for year 7 (I.e when a car is 6 years old) does not attract luxury car tax.
What is mainstrain?
I'd consider my current car as fairly mainstream / white goods. it's a 21 plate A4 Avant S-Line Black edition. I get where you're going though, am i paying £600 a year because of "black edition"? It can't be as the base cost for the car is north of £40k. I paid (financed) £23k for the car so i think my gripe is that the tax amount is calculated at the very moment the car is offered for sale and before it turns a wheel. What is mainstrain?
It seems that "because you can afford a car that **at some point** was marketed north of £40k then of course you can afford £600 a year for the first 5 years.
In my case then, being a 2021 cardoes that mean my car only drops to "cheap" tax from the end of 2026?
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