VED Hassle

[pauljdh]

MY XC90 needs to be taxed 1/8/26 and it'll be the last time at the enhanced rate (£590ish). From 31/8 it would drop to normal rates so I don't want to renew on 1/8 at the high rate - could I declare SORN, then tax it at the new lower ate from 1 Sept?

Does that that make sense and is there another way?

TA

[LarJammer]

Do you mean the additional 'luxury car tax'? If so, the answer is no. The DVLA just defer the payment - you have to pay the entire 5 years worth of fees.

[530dTPhil]

DVLA will adjust the renewal fee to reflect the reduction in rate during the period.

This happened with a car that I bought in March which dropped to the lower rate in December. The final couple of months of the twelve months were at the lower rate reflecting that the VED dropped to around £190 pa.

[pauljdh]

LarJammer said:

Do you mean the additional 'luxury car tax'? If so, the answer is no. The DVLA just defer the payment - you have to pay the entire 5 years worth of fees.

Thanks, car registered 1 Sep 20, then luxury tax paid in Sep 21.22.23.24.25. ie 5 occasions from the second time the car was taxed and as such no further luxury tax would be due.

[BunkMoreland]

pauljdh said:

MY XC90 needs to be taxed 1/8/26 and it'll be the last time at the enhanced rate (£590ish). From 31/8 it would drop to normal rates so I don't want to renew on 1/8 at the high rate - could I declare SORN, then tax it at the new lower ate from 1 Sept?

Does that that make sense and is there another way?

TA

Do it and see what happens. Worst case you'll pay the higher rate as you probably expect. Best case you don't

There's noting inherently illegal in doing that

[Rough101]

I’m fairly sure you end up with a hybrid rate when it’s like this, as I had a car that was a month or so out and had intended to just take 6 months, but they had blended the two and I paid for basically 2 months at the high rate and ten at the low.

Just wait for the renewal letter.