New UK Tax Brackets - £40k list or ROTR?

MrMoo28

Registered User
Does anyone know whether the new UK VED £40,000 threshold applies to the list price of the car (+ options) or the ROTR price?

As far as I was aware, the ROTR price includes (among other things) the first year's tax payment, so it would seem weird to me if you were taxed based on the price+tax...

So say I build an S3 on the Audi Configurator that comes to £39,405 Retail and £40,590 ROTR - is that in the higher VED threshold or not?

Thanks!
 

Tom.H

Registered User
Does anyone know whether the new UK VED £40,000 threshold applies to the list price of the car (+ options) or the ROTR price?

As far as I was aware, the ROTR price includes (among other things) the first year's tax payment, so it would seem weird to me if you were taxed based on the price+tax...

So say I build an S3 on the Audi Configurator that comes to £39,405 Retail and £40,590 ROTR - is that in the higher VED threshold or not?

Thanks!

Hope this clears it up mate.

If your new car is registered on or after the 1 April 2017 it will fall under the new car tax rules.

The list price is the manufacturers quoted price for the vehicle the day before the vehicle is first registered. It is not the list price at the point of ordering.

It includes options fitted by the manufacturer before delivery. It includes the delivery charge, the cost of the pre delivery inspection and VAT. It does not include an warrantees, options fitted by the dealer and the cost of the first registration fee and the first licence.

It's important to note that the manufacturers list price is the price before any incentives or discounts so may not be what is paid for the vehicle.

I hope that helps let me know if you need any more information

Helen
Helen Jones
Service Designer - First Registration & VED Reform Project
 

MrMoo28

Registered User
Hope this clears it up mate.

If your new car is registered on or after the 1 April 2017 it will fall under the new car tax rules.

The list price is the manufacturers quoted price for the vehicle the day before the vehicle is first registered. It is not the list price at the point of ordering.

It includes options fitted by the manufacturer before delivery. It includes the delivery charge, the cost of the pre delivery inspection and VAT. It does not include an warrantees, options fitted by the dealer and the cost of the first registration fee and the first licence.

It's important to note that the manufacturers list price is the price before any incentives or discounts so may not be what is paid for the vehicle.

I hope that helps let me know if you need any more information

Helen
Helen Jones
Service Designer - First Registration & VED Reform Project

So in my example of: £39,405 Retail and £40,590 ROTR - the list price that the tax is calculated on would actually be a figure in between those (but closer to the top value), and the dealer themselves should be able to work it out, but would be more tricky for the customer unless they know what the breakdown of the OTR expenses are.
 
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