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!

[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!

[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,.