How is road tax calculated for cars over £40,000?

I'm mystified about the cost of road tax for vehicles over £40,000 when new. Does one pay the exorbinant amount for the life of the vehicle or is this for a set period and then the tax reverts back to the size of the engine etc? Thank you.

Asked on 2 December 2020 by gerry1945

Answered by Andrew Brady
Vehicle excise duty (VED) is based on CO2 emissions for the first year. This is lumped into the on-the-road price of a new car. After the first year, owners of petrol or diesel cars are charged a flat rate of £150 a year. Hybrid vehicles are charged £140 and electric cars £0. On top of this, cars with a list price of more than £40,000 are charged an extra £325 a year for five years (from the second year). That means, if you buy a petrol or diesel car with a list price of more than £40,000, it'll set you back £475 a year in tax from years two to six. Even if you're the car's second owner, you're responsible for this. After this period, the tax will revert back to the flat rate (so £150 a year for a petrol or diesel car).
Tags: road tax ved
Similar questions
As a motorbike owner and enthusiast, I'm keen to know what the future holds for these petrol vehicles and whether they are likely to be subject to higher road tax, vehicle emission controls or taxation....
Please clarify if the following applies to all vehicles using alternative fuels or just those registered within specific years: 'Alternative fuelled vehicles, including hybrids, bioethanol and liquid...
We are going to buy a new car in March. Has car road tax gone up now?


Value my car