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.
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