Anyone know how this new car tax thing works for cars over £40k? I get that a new car, even if it's under £40k but goes over with options, gets charged 5 years increased tax. 1st year more and then 4 consecutive years after. Something like the usual tax rate and then £310 additional. What if the car's a pre-reg and therefore I'd be the 2nd owner after the dealer? Do I still cop the increased tax even though I'm not buying it new? The other one was, what if the car was over £40k new and I buy it used at less than £40k, say £38k, do I still cop for the increased tax? First world problems I know.
I thought that Tax didn't have to be taxing! I'm confused by the question, let alone whatever the answer is going to be...
The government have decided that on all new cars over £40k you have to pay extra road tax for 5yrs. So if you buy a car that the normal tax rate is £140, you also have to pay the new levy for 5yrs. Something like £500 on top of the £140 for the 1st year and then £310 on top for years 2,3,4,5. I'm not sure if it's only on brand new cars or if you buy a used car that was originally over £40k new you also cop it as the 2nd owner. So if a couple of years down the line you go and look at a motor and say it's now £28k, but was originally £40k, do you still have to pay the additional tax? Make sense??
So basically forcing used car owner to buy @ 5 years old so as not to get stung. Not good for the industry then as more and more cars are in the +£40k camp.
That's the bit I'm trying to find out. Does only the original buyer get stung as a new car purchaser or do subsequent owners also get hit by it? So yeah, potentially you could buy a 3/4 year old car and have to pay £450 tax per year. Apparently they've lost loads of cash since they got rid of the paper disc with people not taxing. Your right, there are plenty of cars hitting £40k these days, especially when you add a few bits and pieces. BMW recently put prices up stating Brexit and the weak pound. If I was to buy my car again now I'd be looking at paying nearly £10k more 2 years on. It also doesn't matter if you get a discount and go under the £40k, they state its the RRP.
you still pay the £140 plus £350 if you buy it second hand until the vehicle is 5 years old ,then it drops to £140 per year.
better than the old system .. I had a honda s2000 where the car tax will be £500 per year until it is 25 years old
The more I think about that statement, the more I think we're being taken for a ride. So the govenrment save a fortune by ditching the disc, only to find that more scroats take to not paying tax. So the answer is tax the law abiding more heavily. Yeah sounds fair...
As for part of the original question, it’s the list price it’s taxed on, not the actual invoice price you pay.
Yeah, I said as much in my 3rd post. Even if you manage to wangle some fantastic deal well under the RRP you still get taxed at the same rate.
