New car tax

[MisterK]

I've only recently picked up on this. If you're thinking of buying a new car this year, now may be the time to do it!
https://www.gov.uk/government/news/new- ... april-2017
A new car over £40k attracts an additional £310, e.g. Total £450 even for low emission cars. Tesla gets hit too.


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[campbell]

Thanks for sharing. £40k threshold unlikely to affect us for the foreseeable tho!

Although...I suppose it might catch if someone bought a £41k luxobarge second-hand for say £25k at about 3 yrs old? That would mean 2 more years with the £310 levy, yes?

Is it just me or has the govt just managed to make taxation even more complicated? Again? They keep saying they aim to simplify it. Lol

[ryallm]

Blimey, just looked at the figures. If I have understood it correctly for a new Exige or Evora you would pay £2010 in the first year, then £450 per year for each of the next 4 years. £3,810 in tax in the first 5 years. Nothing compared to depreciation on a new car I guess, but still I wonder what effect his will have on Lotus sales in the UK.

[Doc883]

They have managed to over complicate the system beyond what I thought possible.
Imagine the scenes at the likes of Arnold Clark as they try and get their Sales reps up to speed with the new system #carnage

[campbell]

"Will you throw in the tax for me?"

"Er. I'll have to ask the accountant"

F*cking mess.

[TophaTron]

I like how there are a handful of cars that will actually benefit from this system if you buy them second hand.

A Mustang V8 squeaks in at under £40k - if you buy one that's had the £2k first year charge paid, the yearly road tax goes to £140 instead of the £500-odd a year it currently is..

[greyrigg]

Am I the only one old enough to remember the 10% car tax we had to pay over and above the VAT?

Any tax with an arbitrary figure as a starting point and then a fixed amount completely screws the market. Expect loads of cars at £39k or upspeccing of cars near that point. (Created a new word there, did you see that?)

Malcolm


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[tut]

I remember the man walking in front with a red flag.

tut

[TophaTron]

Imagine a scenario where a £39,850 car has a metallic paint option for something like £300. That option would actually cost you over £1500 in extra tax over 5 years. Just stupid.

[j2 lot]

Pre - registered cars will be even more popular to save the first year tax lump sum. If you take that hit out of a new car deal it's sore rather than eye watering.
I still think car tax should be added to fuel rather than a separate fee and thought the demise of the tax disc was the precursor to that but it appears not so.

[smee]

I remember the man walking in front with a red flag.

tut

We should get that again for you

[Corranga]

I'm sure dealers will be over the moon with this, as the demand will likely enable them to make a wee bit extra on all pre-regs now.

I guess it'll even out when they next decide that we need to update our cars and offer another scrappage deal in a few years time...

[Dark]

Since almost nobody pays cash for a new car these days I expect dealers are already exploring ways round the rules to keep the list price under £40k.

No sure why people think pre-reg will become more popular or better value? The dealers will just pass on the first years tax premium in the sales price.

[Super7]

Is the charge based on the list price of the model, not including extras, or the list of the whole lot, or the actual purchase price?
I quite fancy a V8 mustang, this would be all the excuse I'd need.

[ryallm]

Is the charge based on the list price of the model, not including extras, or the list of the whole lot, or the actual purchase price?
I quite fancy a V8 mustang, this would be all the excuse I'd need.

It is the manufacturer's list price, including extras, so hard to see much scope for dealers being creative to avoid the tax. When you do the sums it really punishes new purchases - a new V6 Exige will (I think) cost £2010 in the first year compared to £885 under the old system. Not so bad if you keep the car for a few years though - cost for 6 years will be £3950, £3285 under the old system.

Crazy thing is that a Veyron will cost the same to tax after 5 years as a Ford Ka!