Does the 40k luxury tax apply to this car?

[Rob_F]

Hi all,

Sorry as I feel like I should be able to answer this with google, and I thought I had at one point but the dealer disagrees.

My wife is looking to buy an Audi TT 40 S Line with Daytona Paint, Comfort and Sound Pack and upgraded alloys. The exact car is https://audi.co.uk/A8KAY7VC

The price is 38,885 but on the road is 40,245 including first years VED.

I think, from what I’ve read, you shouldn’t include first years VED when considering luxury car tax and therefore it sneaks back in under 40k. Dealer seems to disagree.

Surely others have faced the same thing and found a concrete answer?

Thank you!

[samoht]

gov.uk said:

To ensure those who can afford the most expensive cars make a fair contribution, a supplement of £310 will be applied to the SR of cars with a list price (not including VED) over £40,000, for the first 5 years in which a SR is paid.

https://www.gov.uk/government/publications/vehicle...

[ChocolateFrog]

Dealer in incompetence shocker.

[samoht]

There's a slightly clearer official DVLA definition here
https://assets.publishing.service.gov.uk/governmen...
- again definitely not including "First registration fee and cost of first licence"

[Rob_F]

samoht said:

There's a slightly clearer official DVLA definition here
https://assets.publishing.service.gov.uk/governmen...
- again definitely not including "First registration fee and cost of first licence"

Thank you. I must admit you have out googled me, but it’s great to get some confirmation when you can’t figure out why the Audi main dealer seems to disagree with the Gov (to their own detriment!).

[lornemalvo]

Luxury tax - the biggest con of all. The threshold has never changed with inflation and you pay it on some pretty poxy/ordinary cars now. We should be up in arms about it

[Boxster5]

lornemalvo said:

Luxury tax - the biggest con of all. The threshold has never changed with inflation and you pay it on some pretty poxy/ordinary cars now. We should be up in arms about it

Totally agree. Even a Kia Sportage is hit with the “luxury car tax” when you move up the spec sheets. Briefly considered one as my wife needs something a bit easier to get into due to dodgy joints. Ended up buying a 3 month old Copra Formentor which is under the £40k threshold.
My 2017 718 Boxster misses the luxury car tax con as it was registered in Jan 2017 - I take great delight that I only pay £210 RFL!