If I buy a pre-reg car - will the dealer have already paid for the first year VED?

If I buy a pre-reg car from the dealer (less than 90 days old), will I need to pay first year car tax or will the dealer have already done this?

Asked on 3 October 2017 by Phantom

Answered by Honest John
It's a weird system. From 1 April 2017, to register the car, the dealer will have already paid the first year showroom tax. But because the car is changing keeper, you will have to re-tax it at the rate of £140 a year. The dealer can claim back a proportion of that £140 or a proportion of the showroom tax depending on which is lower. This assumes the car is not a hybrid (£10pa less) and is not over £40,000 (£310pa more).
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