Not in the market for a luxury car so wasn’t aware of this. So even if I buy a 3 year old car for 20 k, if it’s worth 40 when brand new I have to pay the extra tax for 3 years? Seems harsh
It's for an extra 2 years.
And not "worth", but the new List Price (including any factory fit extras).
The thing that irritates me most about this luxury car tax is that the threshold hasn't changed since 2017, whereas new car prices have gone up massively in the same period
As an example - a nice Audi A4 Avant s-line 2 litre petrol was £35k back in 2018 - fancy car but not "luxury". the same car now is a smidge over £40k and therefore attracts the luxury tax.
a lovely example of fiscal drag - by doing nothing the government is extracting an extra £1775 from people buying quite ordinary vehicles.
The other thing is that people don't notice because leasing is so popular and the VED is built into the cost of the lease (not PCPs)
