Plug-in car grant and premium rate tax

[tbourner]

So if I buy an EV that costs, say £42k, and the plug-in car grant takes that price (for me) to £37.5k, do I still end up paying the premium VED of £310 in year 2?

Basically; does the car grant apply after the OTR price, or before it?

[oop north]

List price used to determine year two duty / rfl / ved is before application of the grant. It’s the same for company car tax, too

[tbourner]

Well that's annoying. Have to knock off some options!

[oop north]

Make sure you include delivery charge. A few people have found out the hard way, sadly

[PBCD]

Out of curiosity, does the £40k threshold for 'higher rate' VED increase with inflation
each year like the threshold for higher rate income tax, or will it remain at 40k forever??

If the later, then most half decent EVs will be subject to it within the next five years



MARK

[FlossyThePig]

PBCD said:

...does the £40k threshold for 'higher rate' VED increase with inflation each year like the threshold for higher rate income tax, or will it remain at 40k forever??...

The only person who knows the answer to that is Philip Hammond (or his minions).

[DJP31]

FlossyThePig said:

PBCD said:

...does the £40k threshold for 'higher rate' VED increase with inflation each year like the threshold for higher rate income tax, or will it remain at 40k forever??...

The only person who knows the answer to that is Philip Hammond (or his minions).

At the moment it is fixed at £40k, no inflation linking.