VED additional rate when buying used

[Fatherdougal]

This seems like it should be a simple question, but I can't for the life of me seem to find an answer. When buying a 3 year old car valued at over £40k (so eligible for the additional fee) - do I have to pay that straight away?

The seller paid that 4 months ago - so when they apply for their VED refund, will they also get that pro-rated? Or will theirs cover for the year and I pay the additional amount in 8 months time? TIA!

[maz8062]

You’ve lost me there, friend. Don’t you just pay the annual VED, which you can check online, from the time that you buy it?

[Earthdweller]

Fatherdougal said:

This seems like it should be a simple question, but I can't for the life of me seem to find an answer. When buying a 3 year old car valued at over £40k (so eligible for the additional fee) - do I have to pay that straight away?

The seller paid that 4 months ago - so when they apply for their VED refund, will they also get that pro-rated? Or will theirs cover for the year and I pay the additional amount in 8 months time? TIA!

Tax is instant now, for the current month

Previous keeper cancels his tax on sale .. it is not transferable

You purchase tax on taking ownership

If you buy/sell mid month you both pay for that month

Edit to clarify

If the seller had paid for 6/12 months in advance he will get a refund for the complete months remaining/unused

Your date of liability for the tax starts from the date of Change of keeper

Edited by Earthdweller on Wednesday 3rd March 17:56

[Every day a journey]

Earthdweller said:

Your date of liability for the tax starts from the date of Change of keeper

Edited by Earthdweller on Wednesday 3rd March 17:56

Almost. Starts from the first on the month during which you purchased it. Buy a car on 28th (can risk it for two/three days) but you pay that whole month.

[Fatherdougal]

maz8062 said:

You’ve lost me there, friend. Don’t you just pay the annual VED, which you can check online, from the time that you buy it?

Maybe I'm confusing myself here. Because the list value of the car is over £40k, you have to pay VED (150 quid or whatever) plus an extra £325 per year for the next 5 years.

I understand that when the seller notifies DVLA they have sold the car to me, they will get back (dated to the start of the next month) tax for remaining months. My question is will they also get that for the additional amount (ie the £325)?

So what I mean is if they pay both VED and the extra £325 then 3 months later I buy the car, do I pay the full £325 for the year - as that's extra money to the taxman - or does the £325 they paid cover the whole year? Hope that's clearer!

Edited by Fatherdougal on Wednesday 3rd March 19:03

[Fatherdougal]

Earthdweller said:

Tax is instant now, for the current month

Previous keeper cancels his tax on sale .. it is not transferable

You purchase tax on taking ownership

If you buy/sell mid month you both pay for that month

Edit to clarify

If the seller had paid for 6/12 months in advance he will get a refund for the complete months remaining/unused

Your date of liability for the tax starts from the date of Change of keeper

Edited by Earthdweller on Wednesday 3rd March 17:56

Yes, as per my next post, my question is about the additional £325 rate rather than the normal tax.... Hope that makes sense!

[ChocolateFrog]

Every day a journey said:

Earthdweller said:

Your date of liability for the tax starts from the date of Change of keeper

Edited by Earthdweller on Wednesday 3rd March 17:56

Almost. Starts from the first on the month during which you purchased it. Buy a car on 28th (can risk it for two/three days) but you pay that whole month.

I just wait until the 1st of the month to start paying the tax otherwise the DVLA get paid twice for the same car, which seems a bit scammy to me.

[Chris32345]

ChocolateFrog said:

I just wait until the 1st of the month to start paying the tax otherwise the DVLA get paid twice for the same car, which seems a bit scammy to me.

That's okay of your keeping it off the road and declaring it sorn
But you can't use the car until the end of the month without taxing unless you want to risk being done from driving with tax

[Chris32345]

ChocolateFrog said:

I just wait until the 1st of the month to start paying the tax otherwise the DVLA get paid twice for the same car, which seems a bit scammy to me.

That's okay of your keeping it off the road and declaring it sorn
But you can't use the car until the end of the month without taxing unless you want to risk being done from driving with tax

[Earthdweller]

Every day a journey said:

Almost. Starts from the first on the month during which you purchased it. Buy a car on 28th (can risk it for two/three days) but you pay that whole month.

As I said .. if to buy mid month both the buyer and seller pay for that month

Payments and refunds are calculated on whole months but the buyers liability starts from the date of transfer of ownership

[Earthdweller]

Fatherdougal said:

Yes, as per my next post, my question is about the additional £325 rate rather than the normal tax.... Hope that makes sense!

It is just normal tax isn’t it, which is reduced when the vehicle is six years old

The rate payable from years 2-6 years is £460

When the car is taxed on its 6th birthday it reverts to the standard flat rate currently £150

[M4cruiser]

If I could afford to buy and run a car like that, why would I be worrying about an extra few hundred on tax.

[roadsmash]

According to PH.....

Paying monthly is council. You obviously can’t afford the car. I bet it’s on PCP too.

[TonyF1]

The VED will by the Co2 rate plus £325 pro rata.

[Earthdweller]

TonyF1 said:

The VED will by the Co2 rate plus £325 pro rata.

I think it’s changed now

There’s a first year rate which can be eye popping

Then year two onwards everything is £150 for petrol/diesel and £140 for hybrids

Cars with a list of over £40k new are £460 from year 2-6 then drop to £150

It’s not co2 related now

[Fatherdougal]

M4cruiser said:

If I could afford to buy and run a car like that, why would I be worrying about an extra few hundred on tax.

The smart answer is probably that's how you can afford to buy and run a car like that - by counting the pennies and not throwing away money.

The real answer is my dad died a couple of months ago unexpectedly and with most of his inheritance I'm buying the car he and I always said we wanted and would get.

But thanks for your input

[Fatherdougal]

roadsmash said:

According to PH.....

Paying monthly is council. You obviously can’t afford the car. I bet it’s on PCP too.

Who said anything about paying monthly? As above it's inheritance from my dad dying. What a lovely welcoming place this can be,.

[roadsmash]

It’s a joke dude. Sorry to hear about your dad.

[Charles Sweeney]

I fully understand your question. I run Regisearch and I make it my business to know about these things but it can be difficult getting definitive information from the DVLA at times. I think you would pay the extra amount pro-rata depending on the balance of the amount due for the year. The extra amount has to be paid for five years from the start of the second licence. Note they say the second licence and not the second year, so you could buy a new car over £40k, tax it (paying the first licence rate which is based on CO2) then sell it a week later. The new owner would pay the standard rate (based on fuel type this time) plus the additional rate of £325.

You can get the precise tax price from the DVLA if you have the V5C:

https://www.gov.uk/get-vehicle-information-from-dv...

Tax prices here:

https://www.gov.uk/vehicle-tax-rate-tables

[dave_s13]

I got caught out by this last week as I had no idea about the 40k+ thing.

Paid for car, signed stuff, salesman went to tax it, will you be paying the £465 monthly or annually sir? Wtf....I was expecting £150!

Instantly cancelled the deal and punched the salesman in the face.

Actually I just paid it, not a deal breaker.

What's more amazing is that the list price of my new car was around 45k, for a ford galaxy. I mean, I'm grateful there are people out there willing to shell out for these things and it's a supremely equipped vehicle (apart from AWD and adaptive suspension it is "fully loaded"). But £45k, for a ford galaxy!?