VED rates for a Car, second hand but under year old

[Manxwilliams]

Hi All,

Looking into getting into a GR86.

I know the 1st year VED is £1565, then it goes to a flat rate of £180 from start of year 2.

so, if you brought a car at say 9 months old would you have to pay 3 Months of the higher rate and 9 Months of the lower rate?

Anybody know?

Thanks,
Simon

[Soloman Dodd]

Yes

[bencollins4]

No, you wouldn’t. It’s paid on first registration, so the £180 rate would apply from that point onwards, even if 1 day after registration. The original owner would only be refunded based on the £180 rate, I believe.

[Auto810graphy]

Soloman Dodd said:

Yes

50/50 Chance and you got it wrong!

RFL is £180 (of over £40k there is extra to pay)

[AlwynMike]

...and in your example, if it's original cost was over £40k, you'd only pay the enhanced rate for 5 years 9 months, not the full 6 years. (The higher rate is valid for 5 years after the first tax renewal).