When do I stop paying the premium rate of road tax?

I have a 2020 (August) BMW X1 M Sport, I am currently paying £570.00 per annum road tax. I understand that the excise duty is higher for vehicles over £40,000 when new, however when will the cost fall, and if so what would the annual duty be?

Asked on 18 August 2023 by Patrick Stanyer

Answered by David Ross
If you are paying the premium rate of VED on your BMW, this is charged for five years from the second time the vehicle is taxed, so this will apply for you until August 2026. At the current rates your VED amount would reduced to £180, but it is likely that rates will change again before 2026.
Similar questions
I noted your answer in 2017 that factory fitted extras are included in the threshold , but are the initial VED and also delivery charges also included which vary from dealer to dealer etc.? Appreciate...
I bought a MINI Countryman Hybrid in March 2023. I was very careful to keep the total cost under £40,000. I ordered it in June 2022, but there were a series of delays with manufacture and it was registered...
I am purchasing a new Volkswagen Transporter van and having it converted into a campervan. The purchase price of the basic van is just over £40k. Does the premium supplement apply to vans or does it only...
Related models
Practical, spacious and good to drive. Most engines offer strong performance and low running costs. Primarily front wheel drive. Well-equipped as standard.

Value my car

Save £75 on Warranty using code HJ75

with MotorEasy

Get a warranty quote

Save 12% on GAP Insurance

Use HJ21 to save on an ALA policy

See offer