Car tax on 40k new car
Discussion
I may be being a bit dim here but I can't find out the answer from google. I am considering a new car which with extras is £39,700 ish but the OTR price is £40,800 ish. Does the new luxury car tax affect this, ie. will I be paying £140/yr or £450/yr?
I'm sick of currently paying >£500/yr in car tax so if it is the higher figure then some options would have to go on principle.
I'm sick of currently paying >£500/yr in car tax so if it is the higher figure then some options would have to go on principle.
cb31 said:
Damn. It really is a pisstake, a basic Audi A6 avant is more than £40k nowadays. I'm sure the limit will stay at 40k while many more cars increase in price and get caught in this.
The £40k threshold is rather arbitrary but to put it into perspective, the additional tax is only £310 per year for only the first 5 years. It's not a huge amount, particularly compared to the £40k+ cost of the car itself. Edited by Mandat on Tuesday 5th February 13:15
Mandat said:
cb31 said:
Damn. It really is a pisstake, a basic Audi A6 avant is more than £40k nowadays. I'm sure the limit will stay at 40k while many more cars increase in price and get caught in this.
The £40k threshold is rather arbitrary but to put it into perspective, the additional tax is only £310 per year for only the first 3 years. It's not a huge amount, particularly compared to the £40k+ cost of the car itself. Mandat said:
The £40k threshold is rather arbitrary but to put it into perspective, the additional tax is only £310 per year for only the first 3 years. It's not a huge amount, particularly compared to the £40k+ cost of the car itself.
From my understanding it was an additional £310 on top of the road tax for the first 5 years Total cost is LESS year 1 RFL and 1st reg fee (£55)
e.g. Car cost with options is £40500 but year 1 RFL is £515 then it falls into the lower banding (cost for tax perspective= £39930)
If cost is £40500 but year 1 RFL is £205 then it would be subject to the "additional rate" (cost for tax perspective = £40240)
Dealer fitted options are not included (e.g. mudflaps, service plans) only FACTORY options
Check carefully with the dealer as they should be able to help - as some people in the trade are numpties and don't know their stuff CHECK the registration forms before you sign them as it does state if it will be liable for the additional rate (we have had cars ordered £5 over due to a mis-calculation and caused no end of headaches).
e.g. Car cost with options is £40500 but year 1 RFL is £515 then it falls into the lower banding (cost for tax perspective= £39930)
If cost is £40500 but year 1 RFL is £205 then it would be subject to the "additional rate" (cost for tax perspective = £40240)
Dealer fitted options are not included (e.g. mudflaps, service plans) only FACTORY options
Check carefully with the dealer as they should be able to help - as some people in the trade are numpties and don't know their stuff CHECK the registration forms before you sign them as it does state if it will be liable for the additional rate (we have had cars ordered £5 over due to a mis-calculation and caused no end of headaches).
RS MOJO said:
Total cost is LESS year 1 RFL and 1st reg fee (£55)
e.g. Car cost with options is £40500 but year 1 RFL is £515 then it falls into the lower banding (cost for tax perspective= £39930)
If cost is £40500 but year 1 RFL is £205 then it would be subject to the "additional rate" (cost for tax perspective = £40240)
Dealer fitted options are not included (e.g. mudflaps, service plans) only FACTORY options
Check carefully with the dealer as they should be able to help - as some people in the trade are numpties and don't know their stuff CHECK the registration forms before you sign them as it does state if it will be liable for the additional rate (we have had cars ordered £5 over due to a mis-calculation and caused no end of headaches).
This is the correct answer OPe.g. Car cost with options is £40500 but year 1 RFL is £515 then it falls into the lower banding (cost for tax perspective= £39930)
If cost is £40500 but year 1 RFL is £205 then it would be subject to the "additional rate" (cost for tax perspective = £40240)
Dealer fitted options are not included (e.g. mudflaps, service plans) only FACTORY options
Check carefully with the dealer as they should be able to help - as some people in the trade are numpties and don't know their stuff CHECK the registration forms before you sign them as it does state if it will be liable for the additional rate (we have had cars ordered £5 over due to a mis-calculation and caused no end of headaches).
RS MOJO said:
Total cost is LESS year 1 RFL and 1st reg fee (£55)
e.g. Car cost with options is £40500 but year 1 RFL is £515 then it falls into the lower banding (cost for tax perspective= £39930)
If cost is £40500 but year 1 RFL is £205 then it would be subject to the "additional rate" (cost for tax perspective = £40240)
Dealer fitted options are not included (e.g. mudflaps, service plans) only FACTORY options
Check carefully with the dealer as they should be able to help - as some people in the trade are numpties and don't know their stuff CHECK the registration forms before you sign them as it does state if it will be liable for the additional rate (we have had cars ordered £5 over due to a mis-calculation and caused no end of headaches).
Many thanks, looking into it more I will wait until later in the year anyway. Wife wants an A4 avant and it seems a new version is coming this year so would be daft to buy now. Will be a little bit more expensive but should include some of the options I wanted so may sneak in under 40k anyway.e.g. Car cost with options is £40500 but year 1 RFL is £515 then it falls into the lower banding (cost for tax perspective= £39930)
If cost is £40500 but year 1 RFL is £205 then it would be subject to the "additional rate" (cost for tax perspective = £40240)
Dealer fitted options are not included (e.g. mudflaps, service plans) only FACTORY options
Check carefully with the dealer as they should be able to help - as some people in the trade are numpties and don't know their stuff CHECK the registration forms before you sign them as it does state if it will be liable for the additional rate (we have had cars ordered £5 over due to a mis-calculation and caused no end of headaches).
The rules are slightly confusing. If your car is deemed to fall into the over £40k band you pay the additional £310 (plus the standard annual tax for the type of fuel it runs on) from the second time its taxed, for 5 years.
So, until its 6 years old, not just the first 5 years.
https://www.gov.uk/government/news/new-vehicle-tax...
So, until its 6 years old, not just the first 5 years.
https://www.gov.uk/government/news/new-vehicle-tax...
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