Can I buy a new car and SORN it immediately to avoid the first year tax?

I have been offered a Mitsubishi Shogun registered by the dealer on 1 April 2017. When the car is transferred they indicate that I will have to pay the VED of £140. Does that mean that the first owner can reclaim the balance of the £1700 first year tax? If I buy a new car with £1700 first year tax, can I SORN it immediately, claim the refund of the balance and retax it a month later at £140?

Asked on 6 May 2017 by Mike Taylor

Answered by Honest John
No, the way the new system works, that is forfeit. The dealer will get a proportion (most) of the £140pa tax back, but the £1700 showroom tax is gone to HMRC forever. You didn't think they didn't think of that, did you?
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