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Do optional extras count for the £40,000 tax threshold?
If I buy a car for the list price, say £38,000, I would pay the standard rate for the first year rate depending on the CO2 emissions and whether it was petrol or diesel. However if I added any extras to tip the cost to say £40,250 would I then be penalised for buying these extras so that I would have to pay an additional £320 per year on top of the standard rate for the first five years?
Asked on 6 January 2019 by david garfield davies
Answered by
Honest John
Yes, you would be. The £40k threshold includes all extras and delivery charges at the manufacturer listed price (not the discounted price), but does not include first year showroom tax, nor the £55 first registration tax.
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