I bought a car for less that £40,000 but this year's tax is £465. Can that be right?

Last September I bought a new Honda CR-V Hybrid at full price - which was less than £40,000. I've now received a reminder for this year's car tax stating the amount of £465. Can this be correct? Do other factors affect what I have to pay?

Asked on 10 August 2020 by Peter Carey

Answered by Georgia Petrie

The list price that determines whether you pay the premium tax includes optional extras, delivery, plates and fuel. The price for a new Honda CR-V Hybrid is £37,810 - so you may have bumped it to over £40k depending on what you added (if anything), delivery to your house etc.

Tags: ved

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