Can I buy a new car and SORN it immediately to avoid the first year tax?

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Can I buy a new car and SORN it immediately to avoid the first year tax?

I have been offered a Mitsubishi Shogun registered by the dealer on 1 April 2017. When the car is transferred they indicate that I will have to pay the VED of £140. Does that mean that the first owner can reclaim the balance of the £1700 first year tax? If I buy a new car with £1700 first year tax, can I SORN it immediately, claim the refund of the balance and retax it a month later at £140?

Asked on 6 May 2017 by Mike Taylor

Answered by Honest John

No, the way the new system works, that is forfeit. The dealer will get a proportion (most) of the £140pa tax back, but the £1700 showroom tax is gone to HMRC forever. You didn't think they didn't think of that, did you?

Tags: buying a 4x4 dealers ved dvsa showroom tax

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Mitsubishi Shogun (2007 - 2019)

A rugged hard-worker that can tow heavy loads without breaking sweat and conquer terrain that would faze nearly all of its rivals, spacious cabin and seven seats, reasonably affordable and most version well equipped.