How is VED on £40000 cars calculated?

I noted your answer in 2017 that factory fitted extras are included in the threshold , but are the initial VED and also delivery charges also included which vary from dealer to dealer etc.? Appreciate your advice. I did have a note from the Treasury that they work on the manufacturers' published price which surely does NOT include these items.

Asked on 22 March 2024 by Les Edwards

Answered by David Ross

The calculation used by the government is based on the vehicle's list price on the day before it is first registered and taxed, so this includes the manufacturer's list price, any factory-fit options, delivery to the dealership and any pre-delivery inspection charges, but excludes VED and the first year registration fee.

Tags: new cars ved premium tax

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