Is the Toyota RAV4 subject to extra tax for 5 years due to the £40k price?

I decided to buy the very impressive, but expensive, Toyota RAV4 Plug-in Hybrid. I will take delivery on September 1st. The Toyota dealer doesn’t seem to know as much about this car as he should. Firstly, he told me that all cars with a retail price of £40k and over are subject to a £350 annual tax for the first 5 years. I’ve now been told this isn’t the case for this car. Is this true? I have also been told that I can drive through the centre of London and not have to pay the congestion charge in any area. Is this true? If these are true, is there anything else I should be aware of?

Asked on 2 August 2021 by Jerry Pollentine

Answered by Andrew Brady
After the first year, you'll pay £145 a year in tax (as an alternative fuel vehicle) plus an extra £335 a year (for the first five years) for vehicles with a list price of more than £40,000. Zero-emission vehicles are exempt from this, but not PHEV models like the RAV4 Plug-in.

Currently, vehicles that meet Euro 6 standards (petrol and diesel), that emit no more than 75g/km of CO2 and have a minimum 20 mile zero-emission capable range will qualify for the 100% cleaner vehicle discount – meaning they're exempt from the Congestion Charge. This includes your RAV4. However, from 25 October 2021, the cleaner vehicle discount will change so that only battery-electric or hydrogen fuel cell vehicles are eligible. Essentially, you'll get about two months of free access to Central London – but at least your car will be ULEZ compliant, so you won't have to worry about that charge.
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