£40,000 Tax Band

[Carwyn-s4uad]

Hi,

Does anyone know how to find out if a used car is hit with the >£40,000 list price 'luxury car' tax? I can't find any websites that will give the answer from the reg number. All I can find is that you can get it from the DVLA site but you need the V5 11 digit reference number, which you won't have when browsing cars unless you contact the seller, which isn't exactly convenient.

Thanks.

[Earthdweller]

Yes

It’s applicable till the car is six years old, then it drops to the standard rate

[Carwyn-s4uad]

But how can you check if the extra rate is applicable to a certain car?

[sixor8]

You only need the registration number. If you put it into this DVLA page:

https://vehicleenquiry.service.gov.uk/?_ga=2.10466...

If it is liable for the extra 'tax' for 6 (?) years, the bottom entry of the data returned has the field "Additional Rate applicable until...."

[TTmonkey]

Put the reg into the dvla ‘pay road tax’ website? See what the payment would be?

Sure there’s an easier way though.

[HTP99]

Earthdweller said:

Yes

It’s applicable till the car is six years old, then it drops to the standard rate

I think the question being asked is "I have seen a used car, I am not sure if it falls into the £40,000 + bracket, thus meaning I have to pay the supplement, is there a way of finding out?"

[Carwyn-s4uad]

Yes, as above, that is what I'm trying to do.

The link above does not give the answer.

I thought it would be easy to check, but would appear not!

[sixor8]

Yes it does. I picked a random 2020 Mercedes GT63 from A/trader and put the registration number in. It comes up with "Additional rate applicable until May 2026.."

If that field is not present, then it is an EV, which are still exempt this charge if registered new before 2025. Or, it is a grey import that was not registered new in the UK perhaps?

If you get no vehicle returned, then the plate has very recently been changed or it is fake!

[rayny]

Does this help :
https://motorscan.co.uk/freecarcheck

It shows the current rate of VED, including the additional rate if applicable.

[Geffg]

On the matter of this subject, aren’t the government sneaky sh#ts in that the figure of £40k hasn’t risen and so more and more cars are falling into that bracket each year and so more and more tax off more people.

[MDMA .]

https://www.honestjohn.co.uk/cheap-road-tax/

[rayny]

MDMA . said:

https://www.honestjohn.co.uk/cheap-road-tax/

Was there another change in April 2023 ?

[Carwyn-s4uad]

Thanks Sixor8, you are correct with that link. What threw me is that if the car isn't subject to the extra tax the field "Additional Rate applicable until...." doesn't appear at all, instead of saying 'no' or 'not applicable'. The car I was checking isn't applicable to the additional rate so that field doesn't appear.

And yes, the £40k threshold does appear to have been frozen, so more and more cars are being captured by it given that the list prices are rocketing.

[Dingu]

Geffg said:

On the matter of this subject, aren’t the government sneaky sh#ts in that the figure of £40k hasn’t risen and so more and more cars are falling into that bracket each year and so more and more tax off more people.

Look at income tax bands. Similar there.

[Down on the Farm]

Yes, the threshold has not increased since April 2017.
It's the old fiscal drag at work to help out Jeremy Hunt with his tax grab / headache!!

I read somewhere that the tax was introduced by George Osborne in order to get a slice of the company car action. Does anyone know the reason it was introduced in the first place?

[sixor8]

Because VED became a flat rate again, just like it was before 2001, when all cars paid the same. The only 'fair' way to tax those who can afford it.

It was re-structured to reward those who bought car with low CO2 and penalise those with high, especially if over 225g! But it was TOO popular, anything below 120g and registered after March 2001 but before April 2017 is still only a maximum of £35.

There have also been big cuts in VED paid by the heaviest lorries over the years., they need to claw it back.

Edited by sixor8 on Saturday 30th September 19:27

[Patch1875]

Just taxed my van (£320) and my Audi S4 (£290) today.

Been looking at replacing the S4 with an A6 so looks like I will have to pay the additional tax for a 2/3 years.