New Vehicle Tax Rates - Sense Check

WarwickBoy

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Hi guys,

Trying to work out what the tax would be on the new (2019) Audi S4 Diesel( TDI) which has a CO2 emission of 166 g/km.

Data source: https://www.gov.uk/vehicle-tax-rate-tables

I think I have worked it out correctly but would appreciate a sense check!


First Year Tax: £530
While the first year tax is included in the price, I think it is
  • £530 - As it is a diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48) and as such the 141-171 band states £530 (reference : the first table)

Year 2 to year 5 Tax: £465/year
The rates for the second year (and year 3,4 and 5)
  • £465 (comprising a £145 payment for being a diesel, and then £320 extra)

The thing I'm confused about is the 2nd year payment onward. Looking at the table this seems to imply the tax for ANY CAR WITH ANY CO2 emissions that cost over £40,000 is as follows:

Petrol or diesel car: £465
Electric car: £320
Alternative fuel car: £455

Is it the case that any car over £40,000 pays the same tax from years 2-5?


Year 6 tax onwards: £530
And if I do keep the S4 into year 6 (assuming rates don't change) it will be £530 once again?


Have a got this right? I'd like to plan correctly! Thank you in advance,


Robin
 
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Is it the case that any car over £40,000 pays the same tax from years 2-5?


Year 6 tax onwards: £530
And if I do keep the S4 into year 6 (assuming rates don't change) it will be £530 once again?


Have a got this right? I'd like to plan correctly! Thank you in advance,


Robin

You’re right on the first point, but wrong for the second. After the five years the price goes down to just the base rate which is currently the £145. Basically you just lose the ‘premium car’ tax part from then on.




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Thank you Daggerit. That makes sense. Thinking it through, all cars (irrespective of price) are taxed based on their emissions for the first 5 years of their life. After that, the most CO2 emitting petrol/diesel car pays the same tax as the least CO2 emitting petrol/diesel car. But £145 for everyone then is a reasonable amount I think. :)
 
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Thank you Daggerit. That makes sense. Thinking it through, all cars (irrespective of price) are taxed based on their emissions for the first 5 years of their life. After that, the most CO2 emitting petrol/diesel car pays the same tax as the least CO2 emitting petrol/diesel car. But £145 for everyone then is a reasonable amount I think. :)

For everyone apart from the sub-£40k electric cars which are free I believe? Shame they’re so expensive to buy or they might actually be a decent option just for a runabout.


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I just like the fact I pay £30 a year for my A4, yet my partner pays £145 a year for her 1.0 fiesta :fearscream:
 
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Thank you Daggerit. That makes sense. Thinking it through, all cars (irrespective of price) are taxed based on their emissions for the first 5 years of their life. After that, the most CO2 emitting petrol/diesel car pays the same tax as the least CO2 emitting petrol/diesel car. But £145 for everyone then is a reasonable amount I think. :)
Not quite right.

Cars are taxed based on CO2 for their first year VED at registration. For every year after, you pay - £0 (fully electric, zero emission), £135/year ‘alternative fuel’, £145/year petrol/diesel. In addition, for years 2 to 6, any car with a list price of £40k+ (minus a couple of minor costs) pays the luxury car tax of £320/year on top. All of these rates are normally increased each year with inflation too, sadly.
 

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