Luxury car tax

Keywords

What is luxury car tax?

Luxury car tax is an additional fee of £425 to tax cars that cost over £40,000 new, on top of the standard rate for that car.

The tax, officially called the 'expensive car supplement', needs to be paid for five years from the second year a car is taxed.

Related Jargon

What is a coupé car?

A coupé is traditionally a car with two doors and a fixed roof which slopes down at the back.

What is a full dealer service history?

A full dealer service history is one that shows that all the servicing, maintenance and repair work done on a car has been carried out at one of the manufacturer’s official dealers.

What are the different coverage types of car insurance?

The different types of car insurance you can buy.

What is vehicle excise duty (VED)?

Commonly known as road tax or car tax, Vehicle Excise Duty (VED) is the annual tax that the owner of a vehicle has to pay to the government for it to be used (or parked) on public roads.

What is benefit-in-kind (BiK) tax?

Benefit-in-kind (or BiK) is a tax on employees who receive perks from their job on top of their salary. So, if you have a company car that you also have for private use, you’ll have to pay a BiK tax contribution.

What is a car's list price?

The list price of a new car is the recommended retail price. It is what buyers pay before various charges are added on that then add up to the on-the-road (OTR) price.

What are a car's CO2 emissions?

When petrol or diesel burns in an engine, carbon dioxide gas – also known as CO2 – is the result.

What is an SUV?

Sport utility vehicle - or SUV - a type of car fitted with four-wheel drive, which was built for use off-road.