The £40k car tax (quick question)

Spends over £40k on car, complains about an extra £350 tax.
Out of interest, do plug-in hybrids have to pay less, or just the zero-emissions vehicle exemption?

Is this the tax rate forever, or does it decrease as the cars get older?
 
mjt said:
Spends over £40k on car, complains about an extra £350 tax.
Out of interest, do plug-in hybrids have to pay less, or just the zero-emissions vehicle exemption?

Is this the tax rate forever, or does it decrease as the cars get older?
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Hybrids still have to pay its only EVs that get a pass (for now) and it doesnt decrease as it gets older. It applies for the first 5 years only then stops.

Its basically an extra luxury tax of £1,550 for daring to buy a car which costs more than £40k.
 
mjt said:
Spends over £40k on car, complains about an extra £350 tax.
Out of interest, do plug-in hybrids have to pay less, or just the zero-emissions vehicle exemption?

Is this the tax rate forever, or does it decrease as the cars get older?
Click to expand...

Spends time complaining about a complaint he doesn't understand...

Its £310 a year for 5 years where no one really pays that, just lease, HP etc so it adds a lot to the TCO.

Its only the 0g ie BEVs that are exempt.
 
mjt said:
Spends over £40k on car, complains about an extra £350 tax.
Out of interest, do plug-in hybrids have to pay less, or just the zero-emissions vehicle exemption?

Is this the tax rate forever, or does it decrease as the cars get older?
Click to expand...
To be fair given most people buy on finance then an extra £350 is like a month's payment!
 
mjt said:
Spends over £40k on car, complains about an extra £350 tax.
Click to expand...

You're clearly missing the point.

You don't need to spend £40k on a car to be hit with this extra tax.

Consider these examples:

Person A factory orders his brand new 320i xDrive M Sport for which he pays cash because he's so rich. It costs him £39,360. He does not have to pay the extra £350 tax because his car has a list price of under £40k.

Person B buys a 4 year old 320i xDrive M Sport with 100k on the clock from auction for a fraction of it's new price, given its now 4 years old and quite well used. He's really pleased to discover that in addition to the standard specification of the vehicle, the first owner optioned a electric glass sunroof. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k.

Person C factory orders a brand new 320i xDrive M Sport on finance, but manages to negotiate a reasonable discount of list price, as is common. He picks a few nice options, too. His car costs him £38,000 after discount. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k. So, he's bought a car brand new as the first owner for less than Person A, but must pay a total of £1750 additional tax on it because of a number that was totally irrelevant to his purchase.

Person D buys a brand new Ford Mustang with no real consideration for anything like Co2 emissions. But that's fine, because it has a list price of under £40k, so he gets the cheap tax.

Please explain how this is a sensible and rational policy.
 
[TW]Fox said:
You're clearly missing the point.

You don't need to spend £40k on a car to be hit with this extra tax.

Consider these examples:

Person A factory orders his brand new 320i xDrive M Sport for which he pays cash because he's so rich. It costs him £39,360. He does not have to pay the extra £350 tax because his car has a list price of under £40k.

Person B buys a 4 year old 320i xDrive M Sport with 100k on the clock from auction for a fraction of it's new price, given its now 4 years old and quite well used. He's really pleased to discover that in addition to the standard specification of the vehicle, the first owner optioned a electric glass sunroof. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k.

Person C factory orders a brand new 320i xDrive M Sport on finance, but manages to negotiate a reasonable discount of list price, as is common. He picks a few nice options, too. His car costs him £38,000 after discount. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k. So, he's bought a car brand new as the first owner for less than Person A, but must pay a total of £1750 additional tax on it because of a number that was totally irrelevant to his purchase.

Person D buys a brand new Ford Mustang with no real consideration for anything like Co2 emissions. But that's fine, because it has a list price of under £40k, so he gets the cheap tax.

Please explain how this is a sensible and rational policy.
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I never said it was rational. Putting a lump sum on anything over an arbitrary list price (which no one pays) is stupid.
At least make it regressive based on engine size, emissions, power, etc. like they do in other countries. So the more it pollutes, the more tax you pay. Even if you don't agree, you can't claim there is an element of logic behind it.

You guys still have it good in the UK, but I agree your current system is stupid.
 
is there a way to find out your cars list price? is it a case of contacting the dealership? when we bought our car we was told at the time that it would be in the high tax bracket but when i went to put tax it, i was given a £150 bill for the year so not complaining.
 
David Flett said:
is there a way to find out your cars list price? is it a case of contacting the dealership? when we bought our car we was told at the time that it would be in the high tax bracket but when i went to put tax it, i was given a £150 bill for the year so not complaining.
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I don't think so unless you have the original invoice, which presumably shows it?
 
It was a 2018 model so not new so I didn't receive the original invoice. Not that fussed was just interested to see
 
[TW]Fox said:
You're clearly missing the point.

You don't need to spend £40k on a car to be hit with this extra tax.

Consider these examples:

Person A factory orders his brand new 320i xDrive M Sport for which he pays cash because he's so rich. It costs him £39,360. He does not have to pay the extra £350 tax because his car has a list price of under £40k.

Person B buys a 4 year old 320i xDrive M Sport with 100k on the clock from auction for a fraction of it's new price, given its now 4 years old and quite well used. He's really pleased to discover that in addition to the standard specification of the vehicle, the first owner optioned a electric glass sunroof. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k.

Person C factory orders a brand new 320i xDrive M Sport on finance, but manages to negotiate a reasonable discount of list price, as is common. He picks a few nice options, too. His car costs him £38,000 after discount. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k. So, he's bought a car brand new as the first owner for less than Person A, but must pay a total of £1750 additional tax on it because of a number that was totally irrelevant to his purchase.

Person D buys a brand new Ford Mustang with no real consideration for anything like Co2 emissions. But that's fine, because it has a list price of under £40k, so he gets the cheap tax.

Please explain how this is a sensible and rational policy.
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Yeah its just daft imo ... my Golf GTD Mk 7 was £20 a year tax, a Mk 8 GTD with sunroof, leather, alloys options is £490 a year ... same with 320d's used to be £30 now £490. I guess DVLA crapped themselves in 2017 as so many decent cars were paying low rates of VED.
 
[TW]Fox said:
You're clearly missing the point.

You don't need to spend £40k on a car to be hit with this extra tax.

Consider these examples:

Person A factory orders his brand new 320i xDrive M Sport for which he pays cash because he's so rich. It costs him £39,360. He does not have to pay the extra £350 tax because his car has a list price of under £40k.

Person B buys a 4 year old 320i xDrive M Sport with 100k on the clock from auction for a fraction of it's new price, given its now 4 years old and quite well used. He's really pleased to discover that in addition to the standard specification of the vehicle, the first owner optioned a electric glass sunroof. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k.

Person C factory orders a brand new 320i xDrive M Sport on finance, but manages to negotiate a reasonable discount of list price, as is common. He picks a few nice options, too. His car costs him £38,000 after discount. But he has to pay £350 a year extra tax on this car because the car has a list price of over £40k. So, he's bought a car brand new as the first owner for less than Person A, but must pay a total of £1750 additional tax on it because of a number that was totally irrelevant to his purchase.

Person D buys a brand new Ford Mustang with no real consideration for anything like Co2 emissions. But that's fine, because it has a list price of under £40k, so he gets the cheap tax.

Please explain how this is a sensible and rational policy.
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How is the government (don’t know the agency that deals with this) supposed to track this? And how are consumers supposed to track this?
 
[TW]Fox said:
It's done when the car is first registered and the car then has an 'Additional Rate' marker on it.
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So it's on the V5C? Is this something people declare when trying to sell their cars?

Also is it possible to just have some of the optional extras fitted post delivery to get round the whole RRP thing?
 
Chuk_Chuk said:
So it's on the V5C? Is this something people declare when trying to sell their cars?

Also is it possible to just have some of the optional extras fitted post delivery to get round the whole RRP thing?
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It but quite often it will cost you mroe than the extra tax.

For example with my last car the factory fitted towbar was £995 but it was £2500 if fitted by the dealer afterwards so no point paying £1505 more in order to save £1550 of road tax over 5 years.
 
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