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Discussion Starter #1
Hi,

I'm trying to find out if my VED will change - currently my car is subject to the Luxury Car tax but from reading some articles online it would seem that that will no longer be the case from this month, does anyone know for sure?

Incidentally, the DVLA have taken my Direct Debit at the usual amount so it does not seemed to have changed this month....

Thanks
 

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Hi,

I'm trying to find out if my VED will change - currently my car is subject to the Luxury Car tax but from reading some articles online it would seem that that will no longer be the case from this month, does anyone know for sure?

Incidentally, the DVLA have taken my Direct Debit at the usual amount so it does not seemed to have changed this month....

Thanks
I haven't looked into it, but they don't normally make retrospective changes. I would think you will continue to pay what you signed up for.
 

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What they said ^^^^^^^!

The only changes that occur once a car is manufactured and assessed are inflationary changes to the level of the tax. After all, if you bought a car with zero tax, you wouldn't be too pleased if suddenly the government slapped a £500 a year bill on you following a reassessment of the new model or a change to the underlying system of tax.
 

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Discussion Starter #4
I thought the same but found this article: Car tax changes in 2020 – what do I need to know?

The paragraph of interest:

The other significant change for 2020 is that the additional £320 'expensive car' VED has been scrapped for new and existing electric cars costing more than £40,000. For anyone buying a new pure electric car from 1 April, this equates to a saving of £1600, because they no longer have to pay £320 a year for years two to six of ownership.

People paying the extra £320 for cars bought before 1 April 2020 will no longer have to pay this additional fee. This exemption is due to last until 31 March 2025.
 

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It's stated in the March Budget, just found it. What it doesn't make clear is whether it is retrospective though. The costings show it having an effect in 2020/21. If it is retrospective, they may not have had time to change the DD amount yet or it maybe that your last DD was in arrears?

I'm not sure where the scrapping of previously bought vehicles comes from, I can't see that policy announcement anywhere. Maybe the car mags have got contacts inside somewhere.
 

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In this case it is retrospective.

However the DVLA website hasn’t been updated to reflect this.

In my case I’ve SORN’d my car until they sort it out.
 

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Couldn’t find a source but found the official wording now too. “This measure gives an exemption for all registered zero-emission light passenger vehicles registered from 1 April 2017 to 31 March 2025 from the Vehicle Excise Duty supplement for light passenger vehicles with a list price of more than £40,000, starting from April 2020.”

EDIT - And if anyone is wondering about the dates, the £40k tax was only brought in from 1 April 2017 so nothing before that had it anyway (y)
 

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2020 BMW i3S 120Ah BEV
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Nice. Wish I'd know about this when I studiously avoided the 40k barrier speccing my car...
 

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They don't need any taxes going forwards now they have decided they can just print as much new money as they like.
 

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I thought the same but found this article: Car tax changes in 2020 – what do I need to know?

The paragraph of interest:

The other significant change for 2020 is that the additional £320 'expensive car' VED has been scrapped for new and existing electric cars costing more than £40,000. For anyone buying a new pure electric car from 1 April, this equates to a saving of £1600, because they no longer have to pay £320 a year for years two to six of ownership.

People paying the extra £320 for cars bought before 1 April 2020 will no longer have to pay this additional fee. This exemption is due to last until 31 March 2025.
It is retrospective but only for BEVs, and unfortunately I assume this penalises you for having a REX since it is not zero emissions. Over on the I-Pace forums folks have confirmed that they have zero cost going forwards on VED renewal where they were paying luxury tax before..
 

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Discussion Starter #18
It is retrospective but only for BEVs, and unfortunately I assume this penalises you for having a REX since it is not zero emissions. Over on the I-Pace forums folks have confirmed that they have zero cost going forwards on VED renewal where they were paying luxury tax before..
Are you sure that REX cars are excluded?
 
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