Does the premium car tax £40,000 rate include options?
If I purchase a new car sub £40,000 it is not subject to luxury tax but if I add options which take it over 40k is it liable to the luxury car tax?
Asked on 9 October 2024 by Geoff
Answered by
David Ross
The premium rate of Vehicle Excise Duty is calculated from the list price of the vehicle plus options, so if the addition of options takes this value over £40,000 then the premium rate will apply.
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