Car tax on used cars

[Jumpingjackflash]

Is car tax increasing for used cars? I am already £800 for the year because I’m highest tax rate.

[Doofus]

What's the car and when was it registered?

I don't think there is an £800 rate.

[Benmac]

This does quite a decent job of explaining it and even has a registration based calculator to use!

https://www.honestjohn.co.uk/car-tax/

[POIDH]

Vehicle Excise Duty, being based on emissions and environmental damage, is going to increase in my view. Particularly for older and more dirty vehicles...

[Truckosaurus]

POIDH said:

Vehicle Excise Duty, being based on emissions and environmental damage, is going to increase in my view. Particularly for older and more dirty vehicles...

Indeed. It keeps going up every year.

I'm not sure the government would be brave enough to put massive increases in like they have for new vehicles (which can be hidden in the purchase price or lease cost).

[-Lummox-]

Tax does increase year on year but it's usually only about £5-10 increase annually.

Cars are gradually thinning out in the cripplingly high post-2006 but 10+years old tax bracket because people can't justify / don't want to pay £700+ tax on a car that's worth buttons and is probably getting to be of an age where it's throwing other bills at them too.

[mmm-five]

Jumpingjackflash said:

Is car tax increasing for used cars? I am already £800 for the year because I’m highest tax rate.

Death is the only thing more certain than taxes increasing.

But yes, they tend to go up by inflation every April.

Mine (2006, in the top band M) is going up from £735 to £760.

Can't see any at almost £800 currently.

Current VED rates:
https://www.autotrader.co.uk/content/advice/car-ta...

VED rates from April 2025:
https://www.petebarden.co.uk/news/articles/how-muc...

Edited by mmm-five on Friday 31st January 13:42

[-Lummox-]

That being said it does look like EV drivers are looking at paying more RFL soon if the link below is correct:

https://www.mirror.co.uk/money/millions-uk-drivers...

Bet the manufacturers are over the moon about the government making EVs less desirable financially than they previously were...

[IanJ9375]

-Lummox- said:

That being said it does look like EV drivers are looking at paying more RFL soon if the link below is correct:

https://www.mirror.co.uk/money/millions-uk-drivers...

Bet the manufacturers are over the moon about the government making EVs less desirable financially than they previously were...

It makes no real difference currently as most are bought new via company car or salary sacrifice schemes and that cost is hidden when included in a fixed monthly cost for salary sacrifice for example.

[Terminator X]

POIDH said:

Vehicle Excise Duty, being based on emissions and environmental damage, is going to increase in my view. Particularly for older and more dirty vehicles...

New cars maybe never the year 2 onwards though, other than inflation type increases . It would force poor people out of cars which will never happen imho.

TX.

[Terminator X]

-Lummox- said:

That being said it does look like EV drivers are looking at paying more RFL soon if the link below is correct:

https://www.mirror.co.uk/money/millions-uk-drivers...

Bet the manufacturers are over the moon about the government making EVs less desirable financially than they previously were...

Take away cheap running costs and why would anyone bother. Apart from tech nerds

TX.

[Jumpingjackflash]

My everyday is a 2007 Mercedes s500. £760 is getting very close to £800. I think I’m going to buy classic cars that are exempt from tax and MOT.

[mmm-five]

Jumpingjackflash said:

My everyday is a 2007 Mercedes s500. £760 is getting very close to £800. I think I’m going to buy classic cars that are exempt from tax and MOT.

Shirley it's £735 currently, so closer to £700

If you buy it after April it will be closer to £800

Maybe cancel at the end of February and renew it the following day in March to take advantage of the lower rate?

When I was using the Z4MC as my daily driver, the £400-£700 VED paled into insignificance compared to the fuel, maintenance and track day budgets - as a second car the VED is more painful

Edited by mmm-five on Friday 31st January 14:12

[Granadier]

Jumpingjackflash said:

My everyday is a 2007 Mercedes s500. £760 is getting very close to £800. I think I’m going to buy classic cars that are exempt from tax and MOT.

Indeed - I'm waiting another two months till my "older and more dirty" vehicle is free from VED and ULEZ, which will be nice