Is the £40,000 tax threshold applicable on the list price or the on the road price?

If i purchase a new Land Rover Discovery Sport Landmark edition, am I liable for the subsequent years increased premium VED charge? Dealers are giving conflicting advice as some are saying the £40k is on the road and some are saying list price.

Asked on 16 July 2018 by Matthew Haslehurst

Answered by Honest John

The only cost that is not included in the calculation is the first year VED. So if when that is subtracted from the invoice price you are still under £40,000, you remain on £140 tax for the five subsequent years.

Tags: buying a new car showroom tax ved bands

Similar questions

What's the best saloon or estate for less than £40,000?

I'm looking for either a saloon or estate car for lapping up motorway miles, around 20k miles a year, that needs to be comfortable but I like sporty driving cars also. I have around £35k to spend on a...

Why am I being charged premium car tax when my new car is under £40k?

I am buying a new DS 4 Cross Tivoli 225. The dealer says the tax will include the £40K premium car tax surcharge because the model was originally listed at over £40k. This particular model is no longer...

Will I have to pay the higher road tax rate on my Cupra Formentor?

In April last year I ordered a Cupra Formentor, changed some options and engine size and the final order was placed in August last year. The dealer gave a discount as the price had increased and even before...

Related models