Will I have to pay the higher road tax rate on my Cupra Formentor?

In April last year I ordered a Cupra Formentor, changed some options and engine size and the final order was placed in August last year. The dealer gave a discount as the price had increased and even before the discount the total cost was below £40,000. The car is about to arrive and for curiosity I checked today’s price which, with the options, would now cost just over £40,000. I would be very angry if the tax will be charged on the cost now not on the cost when ordered. The delay in delivery is not the fault of the dealer or myself.

Asked on 3 April 2022 by Michael David Greenhill

Answered by Dan Powell

I fear you will be taxed against the higher road tax rate because the £40,000 premium VED rate is based on the list price of the car when it is first registered (which is the published price before any discounts are applied by the dealer).

The first year rate (commonly known as the 'showroom tax') will be applied when the car is registered by the dealer. From year two you will be charged a flat standard rate of £165 and then an additional £355 per year - £520 in total. This rate will apply until the sixth year when the premium VED rate is dropped.

For more information on VED road tax, see: www.honestjohn.co.uk/cheap-road-tax/

Tags: road tax showroom tax ved rates

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