lexus 450h road tax

[Adrian7]

Was thinking of purchasing a 2020 450h. I see the road tax is 590 pounds per year, someone said to me this would decrease as the car goes over 5 years old. Any truth in this?

Thanks in advance

[Spock66]

Yes you would be paying an extra £410 per year as the original purchase price was over £40k, you do however save £10 by virtue of being a Hybrid.

[GSLV6]

Yes, just been told the 2021 model I'm about to buy is over £800 to tax but I think they got this wrong. After 6 years it drops (presumably to £180 that I'm paying on my RX3) based on the basic petrol rate minus a £10 discount for a hybrid.  Daylight robbery.  It's called the "wealth tax" and applies to all new cars after a April 2017 valued at (correct me if wrong) over approx £40K new.  

It's not exactly straightforward but goes something like this.  From new, you pay the first year based on CO2 emissions, then on year 2 you pay( from 2 to 6 years) independent of CO2 and calculated purely on the car's new cost.  So years 2 to 6 you pay a £410 supplementary charge on top of the basic charge (£190) for a car costing over £40K new plus, so £590 for the 2 to 6 years before it drops to £180.  It's not as if we're not fleeced by vat rates on fuel, this is quite a hike for anyone buying any RX made after April 2017.

[Tickedon]

12 hours ago, GSLV6 said:

Yes, just been told the 2021 model I'm about to buy is over £800 to tax but I think they got this wrong. After 6 years it drops (presumably to £180 that I'm paying on my RX3) based on the basic petrol rate minus a £10 discount for a hybrid.  Daylight robbery.  It's called the "wealth tax" and applies to all new cars after a April 2017 valued at (correct me if wrong) over approx £40K new.  

It's not exactly straightforward but goes something like this.  From new, you pay the first year based on CO2 emissions, then on year 2 you pay( from 2 to 6 years) independent of CO2 and calculated purely on the car's new cost.  So years 2 to 6 you pay a £410 supplementary charge on top of the basic charge (£190) for a car costing over £40K new plus, so £590 for the 2 to 6 years before it drops to £180.  It's not as if we're not fleeced by vat rates on fuel, this is quite a hike for anyone buying any RX made after April 2017.

Just to add, both standard VED and the luxury car tax element also increases by inflation each year… so over the 5 years it’ll keep going up.

The £10 hybrid discount on VED also disappears from April 2025. 

[GSLV6]

shocking really given the overall emissions for the size are relatively low.  It's a pure stealth tax when EV owners, also burning fossil fuels to power their vehicles and wearing the roads out with heavier vehicles get off lightly.

[Tickedon]

24 minutes ago, GSLV6 said:

shocking really given the overall emissions for the size are relatively low.  It's a pure stealth tax when EV owners, also burning fossil fuels to power their vehicles and wearing the roads out with heavier vehicles get off lightly.

They’ll be in the same position from April 2025 - all EVs (new and old) will pay VED. Newly registered EVs over £40k will also pay the luxury car tax element.