VED on a nearly new car

[HDJ100]

I am aware that when you buy a used car you have to tax it as tax no longer transfers to the new owner. If you are buying a high emissions band, nearly new i.e. a 3 to 6 month old ex demo, do you have to pay the first year more expensive tax rate again or does it default to the cheaper second year rate?

[Olas]

that depends if the law states from the date of registration or the date of sale.

[HDJ100]

Does anyone happen to know what the law states?

[Butter Face]

You would pay the second year rate.

[HDJ100]

Thank you.

[2 sMoKiN bArReLs]

Butter Face said:

You would pay the second year rate.

Just a thought then. If every new car was registered by the dealer, and then sold on within say 1 day could the extra VED be avoided?

[Mammasaid]

2 sMoKiN bArReLs said:

Butter Face said:

You would pay the second year rate.

Just a thought then. If every new car was registered by the dealer, and then sold on within say 1 day could the extra VED be avoided?

Yes, by the purchaser, however the dealer would have paid the 1st year's showroom tax already, which wouldn't be refunded.

[2 sMoKiN bArReLs]

Mammasaid said:

2 sMoKiN bArReLs said:

Butter Face said:

You would pay the second year rate.

Just a thought then. If every new car was registered by the dealer, and then sold on within say 1 day could the extra VED be avoided?

Yes, by the purchaser, however the dealer would have paid the 1st year's showroom tax already, which wouldn't be refunded.

Ah well, another door closed

[HDJ100]

I did not realise that the dealer does not get a refund. Does that first year tax transfer or is it another case of DVLA doing double taxation?

[Butter Face]

HDJ100 said:

I did not realise that the dealer does not get a refund. Does that first year tax transfer or is it another case of DVLA doing double taxation?

The 'first year' rate is inlcuded in the OTR by the manufacturer so it's all accounted for and 'lost'. DVLA does indeed get the tax twice.

[HDJ100]

Thanks again. Every day is a school day.