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C43 - When after 5years does luxury car tax premium end? - cws

As of 27th April my C Class will be 5years old - at what point do I cease having to pay the luxury car tax premium?

Thanks-in-advance

C43 - When after 5years does luxury car tax premium end? - _

From HJ Answers

You have to pay an extra £355 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000. You only have to pay this rate for five years (from the second time the vehicle is taxed).

Edited by _ORB_ on 25/04/2022 at 09:47

C43 - When after 5years does luxury car tax premium end? - John F

Isn't C (for 'compact') and 'luxury' a bit of an oxym****? I don't think the DVLA mentions 'luxury', although I for one would certainly expect shedloads of it if by some temporary departure from my senses and credit balance I found myself in possession of a £40k+ vehicle.

C43 - When after 5years does luxury car tax premium end? - cws

Thanks John F for adding absolutely nothing to this thread.....

C43 - When after 5years does luxury car tax premium end? - Chris M

Yes John, you could have done a Google search for the OP and posted this link:

www.gov.uk/vehicle-tax-rate-tables

ORB's post says the same thing.

This would have saved the OP the bother but no, you chose to add some levity to the thread.

:)

C43 - When after 5years does luxury car tax premium end? - Xileno

A bit of thread drift is acceptable. However I think the OP's question is now fully answered and as there's nothing further to add I will close it.

Any - Luxury Car Tax - Brit_in_Germany

Clearly the OP in the locked thread knew about the 5 years.

My guess is that the wording was not understood - do you pay the higher rate for 5 years or until the car is 5 years old? A simple clarification of the situation might have been the most helpful response. Some people might get confused by the .gov site.

Any - Luxury Car Tax - Xileno

"do you pay the higher rate for 5 years or until the car is 5 years old? "

The Gov site says: You only have to pay this rate for five years (from the second time the vehicle is taxed).

I read that as the final enhanced tax is paid at the beginning of the sixth year, so the tax reverts to the lower figure at the start of the seventh year.

Any - Luxury Car Tax - John F

The question in the previous thread was clear......

As of 27th April my C Class will be 5years old - at what point do I cease having to pay the luxury car tax premium?

...but despite the assertion it was fully answered, it clearly wasn't. No-one identified the point.

My interpretation of the gov.uk expensive vehicle tax rules is that the point in question is 27th April 2023. Apologies for possible misinterpretion and lack of levity.

Any - Luxury Car Tax - sammy1

In plain English please is it its 5th or 6th year?

Any - Luxury Car Tax - Xileno

Sorry I can't count. John F is right, 2023 which is the 6th year.

Car registered April 2017

Then five taxes of higher amount from 2018 takes it to 2022

So 2023 it reverts to the lower amount which is the car's sixth year.

Any - Luxury Car Tax - Xileno

I've re-opened this thread so I could add the posts from the other thread. It might be useful for it all to be in one.

Any - Luxury Car Tax - sammy1

Is it luxury car tax? Not much worth buying below £40K!

Any - Luxury Car Tax - alan1302

Is it luxury car tax? Not much worth buying below £40K!

Loads and loads of decent cars under £40k, just not as many with the 'deisirable' badges.

Any - Luxury Car Tax - John F

Is it luxury car tax?

No. The thread title is a misnomer. HMG describes it as 'VED expensive car supplement'.

www.gov.uk/government/publications/administrative-...t

Some expensive sports cars are anything but luxurious.