Does a temporary price cut count as a reduction in list price?

Mercedes is offering £4500 off the price of an E-Class until the end of March, bringing the cost of the most popular versions below the £40,000 VED band. I'd like to think that this will count as a reduction in list price for VED, thereby saving buyers even more money in the years to come. But will it? It's only available to private buyers so will HM Govt. say there's no change in list price?

Asked on 15 January 2020 by Neil Sutherland

Answered by Dan Powell
When it comes to road tax VED, the list price is the car's published price before any discounts. This means you'll probably be liable for the higher tax rate. I'd speak with the dealer to be sure, as it's possible that Mercedes-Benz has lowered the published price.
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