Road tax post WLTP
Discussion
I think I know the answer to this but I can't confirm it so I thought I'd ask the PH collective.
I've got a new car on order which is due October/November time but the dealer warned me today that tax rates are likely to change in March which could see the annual road tax rise, possibly to around £500 but he's not sure of the exact figure. This sounds to me to be going back to the scheme that we moved away from in March 2017.
As far as I'm aware at the moment cars pay a certain amount for the first year which is dependant on the CO2 then each year after that it's £140. The only exception is for cars with a list price above £40k, these pay a premium of £300 on top for the first 5 years.
When I ordered the price I agreed to was to include the first year's tax, so if it does change I won't lose out on the first year. I know that the government keep to the scheme that cars are registered on rather than switching so I'm hoping that my car will be on the current £140 a year scheme. I appreciate that the £140 is likely to rise over time but I can't see a jump to £500 in March.
Is the dealer right and there is a whole new scheme coming in? I've had a look around and I can't see anything but I thought I'd ask anyway. In case it makes any difference my new car is an Abarth 595c Competizione.
I've got a new car on order which is due October/November time but the dealer warned me today that tax rates are likely to change in March which could see the annual road tax rise, possibly to around £500 but he's not sure of the exact figure. This sounds to me to be going back to the scheme that we moved away from in March 2017.
As far as I'm aware at the moment cars pay a certain amount for the first year which is dependant on the CO2 then each year after that it's £140. The only exception is for cars with a list price above £40k, these pay a premium of £300 on top for the first 5 years.
When I ordered the price I agreed to was to include the first year's tax, so if it does change I won't lose out on the first year. I know that the government keep to the scheme that cars are registered on rather than switching so I'm hoping that my car will be on the current £140 a year scheme. I appreciate that the £140 is likely to rise over time but I can't see a jump to £500 in March.
Is the dealer right and there is a whole new scheme coming in? I've had a look around and I can't see anything but I thought I'd ask anyway. In case it makes any difference my new car is an Abarth 595c Competizione.
I'm not aware of any legal obligation on the part of the government , but certainly in practice so far cars have always stayed on the same tax scheme under which they were registered, with only incremental rises broadly to reflect inflation.
The salesman seems to be doing well if he knows what the government have got planned for VED in the next budget. Perhaps you could ask him if he knows anything about a trade deal with the EU?
The salesman seems to be doing well if he knows what the government have got planned for VED in the next budget. Perhaps you could ask him if he knows anything about a trade deal with the EU?
Donbot said:
It's going from £140 to £500?!?!
I haven't heard of this.
Exactly, I think he may be getting confused with the first year rate, I can see this increasing as the true emissions will be known with the new testing. I don't think they will change the annual rate so soon after they changed it all last year.I haven't heard of this.
First year rates may change due to increased emissions figures for cars tested under WLTP compared to NEDC but the 2nd year rate will continue at £140 for sub £40k + the extra for above that.
Your OTR price includes your first year rate anyway so the dealer should just suck it up. For most cars in the sub £40k bracket it is likely to be tiny amounts of change tbh.
Your 595 would need to go over 150g/km to change anyway, and if it did it would cost £515 vs £205 which is where your confusion is coming from.
Your OTR price includes your first year rate anyway so the dealer should just suck it up. For most cars in the sub £40k bracket it is likely to be tiny amounts of change tbh.
Your 595 would need to go over 150g/km to change anyway, and if it did it would cost £515 vs £205 which is where your confusion is coming from.
Edited by Butter Face on Monday 6th August 21:49
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