Premium (RRP £40k+) Car Tax

[loofer]

Am I right that this is the first year where, from 1st April 2022 onwards, only cars that are minimum 5 years old, at registration, no longer need to pay the Premium Road Tax Supplement?

The rule came into force on 1st April 2017, so even if in say 2020 you bought a 'premium' 3 year old that had been registered 31st March 2017, you could escape that supplement.

Assuming of course it's not a ZEV ofcourse.

[Richard-eykh1]

I think it's April 2023. Year 1 is the upfront emissions based road tax - and then it's 5 years after that (yeasrs 2-6) which is flat fee + luxury tax (so effectively it's when the car hits 6 years old, not 5)

Easy way to tell is to check the car tax online, it will tell you until when the additional rate is due

[nickfrog]

loofer said:

The rule came into force on 1st April 2017, so even if in say 2020 you bought a 'premium' 3 year old that had been registered 31st March 2017, you could escape that supplement.

Yes but, no but... I bought a March 17 M2 with a circa £300 VED (old system). An April 17 M2 would have been circa £500 but will then be £150 (+inflation) from the 7th year whereas my car will stay at around £300 (+inflation). In other words paying the premium might prove cheaper overall even if more expensive in the short term, depending how long you keep the car.

Edited by nickfrog on Tuesday 8th February 12:06

[loofer]

Richard-eykh1 said:

I think it's April 2023. Year 1 is the upfront emissions based road tax - and then it's 5 years after that (yeasrs 2-6) which is flat fee + luxury tax (so effectively it's when the car hits 6 years old, not 5)

Easy way to tell is to check the car tax online, it will tell you until when the additional rate is due

Ah yes, you're right, it's for 5 years when the standard rate kicks in... which is from year 2.