Road Tax 310 bhp

[Max Headroom]

Hi folks,
Currently toying with the idea of changing my current car for a 310bhp Formentor. I think I know the answer to this question, but looking for confirmation.

Would the 310 still be in the higher tax bracket for the first five years of its life? Seem to recall the first ones were just shy of £40 grand, of course the current list price is higher. Just getting a bit fed up of paying £55 a month road tax for my current car, not really wanting to do similar. Not convinced I want a hybrid as I need the biggest boot space I can.

Cheers

 

[SRGTD]

In the UK, new petrol / diesel and ‘alternative fuel‘ cars (alternative fuel includes hybrids) which have a list price - ex first registration fee and first year’s VED (vehicle excise duty) - of more than £40k at the time they’re first registered will be subject to the additional VED rate for five years from the start of the second registration year, not for the first five years as many seem to think. The first year’s VED is based on the vehicle’s CO2 emissions and will be included in the overall invoice price of the car. The additional VED rate is therefore payable for years 2-6 inclusive. From year seven, the additional VED rate no longer applies - VED reverts back to just the standard rate.

Current rates for 2022 for petrol / diesel cars are £165 standard rate + £355 additional rate = £520 total. Historically, VED rates have increased each year, so I’d expect the £520 figure to increase year on year.

Quite a few people on forums have been caught out thinking that if the list price of the car they’re buying is below £40k at the time they order it, then they won’t be liable for additional VED rate. However, the VED rate is based on the list price of the vehicle at the time it’s first registered, so if price increases between time of ordering and taking delivery push the list price over £40k, the car will be subject to the higher rate VED, even if the price agreed for the vehicle with the dealer at the time of ordering was below £40k.

 

[pocco87]

If you know the reg number you can input it on the gov website and it will state on the final page if there's any additional tax applicable and until when.

GOV.UK - Enter the registration number of the vehicle

vehicleenquiry.service.gov.uk

 

[Max Headroom]

In the UK, new petrol / diesel and ‘alternative fuel‘ cars (alternative fuel includes hybrids) which have a list price - ex first registration fee and first year’s VED (vehicle excise duty) - of more than £40k at the time they’re first registered will be subject to the additional VED rate for five years from the start of the second registration year, not for the first five years as many seem to think. The first year’s VED is based on the vehicle’s CO2 emissions and will be included in the overall invoice price of the car. The additional VED rate is therefore payable for years 2-6 inclusive. From year seven, the additional VED rate no longer applies - VED reverts back to just the standard rate.

Current rates for 2022 for petrol / diesel cars are £165 standard rate + £355 additional rate = £520 total. Historically, VED rates have increased each year, so I’d expect the £520 figure to increase year on year.

Quite a few people on forums have been caught out thinking that if the list price of the car they’re buying is below £40k at the time they order it, then they won’t be liable for additional VED rate. However, the VED rate is based on the list price of the vehicle at the time it’s first registered, so if price increases between time of ordering and taking delivery push the list price over £40k, the car will be subject to the higher rate VED, even if the price agreed for the vehicle with the dealer at the time of ordering was below £40k.

Thanks for the reply, sorry took so long for me to respond. Real life etc. Hmmmmm, not quite sure what I want now then.

 

[Max Headroom]

If you know the reg number you can input it on the gov website and it will state on the final page if there's any additional tax applicable and until when.

GOV.UK - Enter the registration number of the vehicle

vehicleenquiry.service.gov.uk

Seems you need to know the V5 for this, as it asks for the 11 digit ref.

 

[pocco87]

Seems you need to know the V5 for this, as it asks for the 11 digit ref.

That’s only to view the rates, what does it say above that box? Does it say “Additional rate applicable until”?

 

[pocco87]

Like below

 

[Max Headroom]

Like below

Ahhh, yes, got it now. Cheers for your patience.

 

[pocco87]

Ahhh, yes, got it now. Cheers for your patience.

No worries

 

[jcbmally]

Hi folks,
Currently toying with the idea of changing my current car for a 310bhp Formentor. I think I know the answer to this question, but looking for confirmation.

Would the 310 still be in the higher tax bracket for the first five years of its life? Seem to recall the first ones were just shy of £40 grand, of course the current list price is higher. Just getting a bit fed up of paying £55 a month road tax for my current car, not really wanting to do similar. Not convinced I want a hybrid as I need the biggest boot space I can.

Cheers

First ones were VZ Edition and they were £41k+. New 310 models are £43k+, you can get the 310 just under £40k but these are the ones that were released just after the VZ Edition. Then the world went to pot and from the end of 2020 and start of 2021 the price went through the roof.

 

[/dev/null]

I looked at buying an Audi S3 a while back. List price was something like £40,090. For the sake of £90 it would have cost an extra £400 or so a year.

 

[Delanor]

I was in the market for a Formentor and the 310 bhp was at the top of my list until I saw how much the tax was, on principal I refuse to pay this extra tax and as I never own the same car for 5 years I would never see a reduction in that tax probably quite the opposite in fact once Sunak starts to fill the Government coffers, aside from the fact I am already paying £630 pa tax on my RX-8 so it was to be the AWD 2 Litre 190 bhp Formentor now including the RaceChip addition and its plenty quick enough with 236 bhp for our roads.