Car Tax

Discussion in 'Lounge' started by dainesefreak, Apr 16, 2018.

  1. dainesefreak

    dainesefreak Well-Known Member

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    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.
     
  2. r1monkey

    r1monkey Active Member

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    have a look on auto trader website , there is an explanation on there.
     
  3. Muffking

    Muffking Elite Member

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    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...
     
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  4. dainesefreak

    dainesefreak Well-Known Member

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    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??
     
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  5. Muffking

    Muffking Elite Member

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    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.
     
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  6. dainesefreak

    dainesefreak Well-Known Member

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    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.
     
  7. r1monkey

    r1monkey Active Member

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    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.
     
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  8. djfleming22

    djfleming22 Active Member

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    and they say Dick Turpin wore a mask
     
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  9. r1monkey

    r1monkey Active Member

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    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
     
  10. Muffking

    Muffking Elite Member

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    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...
     
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  11. Kentblade

    Kentblade Elite Member

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    As for part of the original question, it’s the list price it’s taxed on, not the actual invoice price you pay.
     
  12. dainesefreak

    dainesefreak Well-Known Member

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    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.
     

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