"Luxury" car tax

phil

phil

Striker
Started 3 years ago on cars with a list price of £40,000 +. Why does it not rise with inflation ?
£40,000 is not the price of a new luxury car now, it now includes a reasonable spec family car.
And if you think "well that will never affect me"... the "luxury " tax continues for 5 years so when you come to buy a reasonable 3 year old car for £20K you could find yourself paying the luxury tax!

And every year this tax includes more and more cars!
With inflation it will soon be including most cars.

If it is 'the rich can afford it' then why is the luxury tax on a VW passat or similar exactly the same as on a Bentley or Ferrari !
 


phil said:
Started 3 years ago on cars with a list price of £40,000 +. Why does it not rise with inflation ?
£40,000 is not the price of a new luxury car now, it now includes a reasonable spec family car.
And if you think "well that will never affect me"... the "luxury " tax continues for 5 years so when you come to buy a reasonable 3 year old car for £20K you could find yourself paying the luxury tax!

And every year this tax includes more and more cars!
With inflation it will soon be including most cars.

If it is 'the rich can afford it' then why is the luxury tax on a VW passat or similar exactly the same as on a Bentley or Ferrari !
Click to expand...
Because the CEx is a money grabbing Tory bastard. See also personal allowances.
 
Like a stealth tax but they need to replace the income as people move from petrol/diesel to electric.
Car prices have been flying up, as you say that is probably only a basic new electric vehicle cost. They aren't the main issue in a lot of cases now though, people are set with a continuous monthly payment for a lease.
 
Aye, but once you're through that initial 5 or 6 year period the tax on a Bentley Bentayga is the same as the tax on a ford fiesta, which makes even less sense.
 
Bob Fleming said:
How is this luxury tax collected? Through the VED?
Click to expand...

What is Luxury Car Tax?​

In the UK, there is a new tax on cars over £40,000 that went into effect on April 1, 2021.
The tax, called the “luxury car tax,” is a surcharge on the Vehicle Excise Duty (VED) for cars that emit more than 150 grams of CO2 per kilometer.
Cars that fall into this category will have to pay an additional £320 per year for the first five years in which the standard VED is paid.
 
phil said:
Started 3 years ago on cars with a list price of £40,000 +. Why does it not rise with inflation ?
£40,000 is not the price of a new luxury car now, it now includes a reasonable spec family car.
And if you think "well that will never affect me"... the "luxury " tax continues for 5 years so when you come to buy a reasonable 3 year old car for £20K you could find yourself paying the luxury tax!

And every year this tax includes more and more cars!
With inflation it will soon be including most cars.

If it is 'the rich can afford it' then why is the luxury tax on a VW passat or similar exactly the same as on a Bentley or Ferrari !
Click to expand...
You've got a point like, it's an absolute scam. Look at some of these figures man for first time tax when you register your vehicle 🤣 even worse

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