When do I stop paying the premium rate of road tax?
I have a 2020 (August) BMW X1 M Sport, I am currently paying £570.00 per annum road tax. I understand that the excise duty is higher for vehicles over £40,000 when new, however when will the cost fall, and if so what would the annual duty be?
Asked on 18 August 2023 by Patrick Stanyer
Answered by
David Ross
If you are paying the premium rate of VED on your BMW, this is charged for five years from the second time the vehicle is taxed, so this will apply for you until August 2026. At the current rates your VED amount would reduced to £180, but it is likely that rates will change again before 2026.
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