Does anybody know when the tax price drops?
Discussion
We're in the process of buying a used car for my wife, and one of the cars was originally over £40k list so the increased car tax price, like the Alpines were.
The dealer claimed that next year the tax price drops to the lower rate as it will be 5 years old. Is this right?
According to the wording on the DVLA, it seems to say that the increased cost is for 5 years from the second year, which could be read as 5+1, so 6 years from date of first registration.
As is often the case with official websites it's as clear as mud.
Does anybody know what is actually true? 5 years or 6 years?
The dealer claimed that next year the tax price drops to the lower rate as it will be 5 years old. Is this right?
According to the wording on the DVLA, it seems to say that the increased cost is for 5 years from the second year, which could be read as 5+1, so 6 years from date of first registration.
As is often the case with official websites it's as clear as mud.
Does anybody know what is actually true? 5 years or 6 years?
Just to kind of clarify things and also confuse me even more the dealer has just shown me that the V5 front page shows the date when the tax price drops
The confusion is that the car was registered mid Jan 2018, yet V5 shows tax rate drop as end of April 2023
Checking my Alpine V5, my car was registered mid Aug 2018, and front sheet shows higher rate tax finishes 30th Nov 2023
So it looks like rates change after 5 years and 3 full months after registration
The confusion is that the car was registered mid Jan 2018, yet V5 shows tax rate drop as end of April 2023
Checking my Alpine V5, my car was registered mid Aug 2018, and front sheet shows higher rate tax finishes 30th Nov 2023
So it looks like rates change after 5 years and 3 full months after registration
Aladoro69 said:
Just to kind of clarify things and also confuse me even more the dealer has just shown me that the V5 front page shows the date when the tax price drops
The confusion is that the car was registered mid Jan 2018, yet V5 shows tax rate drop as end of April 2023
Checking my Alpine V5, my car was registered mid Aug 2018, and front sheet shows higher rate tax finishes 30th Nov 2023
So it looks like rates change after 5 years and 3 full months after registration
My PE was registered on Aug 28th 2018 - my V5 says increased rate applies until 31 07 2024!!! I'll definitely have to look further into it!The confusion is that the car was registered mid Jan 2018, yet V5 shows tax rate drop as end of April 2023
Checking my Alpine V5, my car was registered mid Aug 2018, and front sheet shows higher rate tax finishes 30th Nov 2023
So it looks like rates change after 5 years and 3 full months after registration
Clear as mud!
Just as I thought I had figured it out, your V5 makes it even more confusing
Having looked back at my V5 the date of 1st reg is 24.08.2018 and the front says additional rate until 30.11.2023
There seems no sense that our cars were registered 4 days apart yet you have to pay additional for so much longer
Just as I thought I had figured it out, your V5 makes it even more confusing
Having looked back at my V5 the date of 1st reg is 24.08.2018 and the front says additional rate until 30.11.2023
There seems no sense that our cars were registered 4 days apart yet you have to pay additional for so much longer
The government web site says "Vehicles with a list price of more than 40,000
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 do not have to pay this if you have a zero emission vehicle.
You only have to pay this rate for 5 years (from the SECOND time the vehicle is taxed)."
That sounds like 6 years to me.
It does beg the question for those where the V5 implies a shorter period - "what if you tax for 6 months at year 5 anniversary?"
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 do not have to pay this if you have a zero emission vehicle.
You only have to pay this rate for 5 years (from the SECOND time the vehicle is taxed)."
That sounds like 6 years to me.
It does beg the question for those where the V5 implies a shorter period - "what if you tax for 6 months at year 5 anniversary?"
Edited by bcr5784 on Monday 30th May 08:15
Glad it's not just me that's confused
I too read 5 years plus original tax as 6 years from first reg
As for the V5 implying a shorter period - "what if you tax for 6 months at year 5 anniversary?", that is the only conclusion I come to as well, but strange that my V5 (and some others) are 5 years and 3 months.
Apart from paying monthly I thought minimum period was 6 months, which again doesn't fit what what my V5 says
Not that I am complaining!
I too read 5 years plus original tax as 6 years from first reg
As for the V5 implying a shorter period - "what if you tax for 6 months at year 5 anniversary?", that is the only conclusion I come to as well, but strange that my V5 (and some others) are 5 years and 3 months.
Apart from paying monthly I thought minimum period was 6 months, which again doesn't fit what what my V5 says
Not that I am complaining!
Something I hadn't thought of, that has been pointed out to me is that as tax I no longer transferable when a car is sold, if an owner sells fairly quickly or a car is pre-registered by a dealer the next owner is then the 2nd tax which according to DVLA definition the 5 years starts from.
I am the 3rd owner of my PE, so there is a chance that the 1st owner sold at a premium having been on the waiting list
I have no proof of the theory but does seem to make sense
I am the 3rd owner of my PE, so there is a chance that the 1st owner sold at a premium having been on the waiting list
I have no proof of the theory but does seem to make sense
Aladoro69 said:
Something I hadn't thought of, that has been pointed out to me is that as tax I no longer transferable when a car is sold, if an owner sells fairly quickly or a car is pre-registered by a dealer the next owner is then the 2nd tax which according to DVLA definition the 5 years starts from.
I am the 3rd owner of my PE, so there is a chance that the 1st owner sold at a premium having been on the waiting list
I have no proof of the theory but does seem to make sense
Sounds like a very plausible explanation - doesn't seem exactly fair though.I am the 3rd owner of my PE, so there is a chance that the 1st owner sold at a premium having been on the waiting list
I have no proof of the theory but does seem to make sense
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