When do you start paying the £40,000 premium tax?
I purchased a 2022 BMW 840i which attracted the extra car tax for 5 years. On the document it states that the extra tax will be charged for 5 years from first registration. I bought the car in 2023 when it was a year old and then changed the reg plate to a private one. I was then sent a new a new document and noticed it said the extra tax will be charged till 2028. Surely this is wrong as that would mean the extra tax would be paid for 6 years? Am I misunderstanding the tax method?
Asked on 22 September 2025 by robert battley
Answered by
David Ross
The premium rate payment of VED for cars over £40,000 of £425 is applicable for five years from the vehicle's first birthday. So it will apply from 2023 and not be required when the vehicle is taxed in 2028.
Tags:
car tax
premium tax
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