Vehicle tax reduction

[Duvetday]

The V5 document gives you the date the higher tax is payable to and I was surprised it wasn’t an exact number of years.
My car was first registered in October 2018 but V5 said higher tax payable to 31.12.23 - can anyone explain that?

Given it seems to be an entitrely arbitrary tax I guess they are arbitrary with the dates too ?

[cj10jeeper]

The V5 document gives you the date the higher tax is payable to and I was surprised it wasn’t an exact number of years.
My car was first registered in October 2018 but V5 said higher tax payable to 31.12.23 - can anyone explain that?

Given it seems to be an entitrely arbitrary tax I guess they are arbitrary with the dates too ?

I would assume it’s 5:years from date of second taxation, rather than registration.

[mickjaguar]

Aha! Just read an article about this. The 'luxury' tax is payable for 5 years from the second time the car is taxed.

So assuming the car is taxed at first registration and then sold to the second owner before it's a year old, it then gets taxed a second time within the first year. (VED doesn't stay with the car and roll over nowadays).

Nice surprise that when my VED comes up in July I'll be £130 better off than I was expecting!

[jagseven]

Yes - that makes sense. My car was a pre-reg car registered in October 2018 but not sold to first owner until 3 months later in Jan 2019. So 5 years after that takes me to December 2023. So only 5 years and 3 months at the higher rate.

In contrast my F-Pace was a factory order and I see from my V5 that I will pay the higher rate of tax for the full 6 years.

[scm]

The anniversary for the excess is 1 March.