Will a delay in my new car delivery and an increase in list price mean I pay the premium rate of VED?

I ordered my car in July 2022 with a manufacturer list price of £39,000 so I wouldn't suffer the £40k plus loading for 5yrs.

However it took the manufacturer 8months to supply the car by which time the list price went over £40k, subsequently the DVLA are saying I need to pay the levy. Is this right or fair given its not my fault the car breached the 40k barrier and in any case I still paid the list price at point of sale (July 2022)?

Asked on 19 February 2024 by Aleks Ford

Answered by David Ross

Unfortunately the manner in which the premium rate of VED is charged is based on the vehicle list price the day before it is first registered and taxed, so although this figure would have been below £40,000 when you placed your order, if it was above this figure the day before registration it will incur the additional charge. We would argue that this arrangement is unfair on car buyers, but until the Government changes this arrangement it will continue to affect plenty of new car buyers.

Tags: new cars ved rates premium tax

Similar questions

Should dealerships tell buyers that a used vehicle retailed for more £40,000?

I was looking to buy a nearly new car and eventually decided on an ex demonstrator. I knew the new price was £39,995 and cost of this one was £32,000. I decided to purchase the car. It was only when I...

If I am disabled do I get a 50% discount on new car registration tax?

I'll be getting delivery of a new car in January and was wondering if you could tell me whether I can get a reduction on the first registration tax through being disabled. I normally get a get a 50% reduction...