Definition of “List Price” for Luxury Car Tax

[Rifleman]

Any legal experts in the forum?

Having nothing better to do today I decided to try to find a definitive definition of what the DVLA mean by “List Price” when calculating the car tax payable in yrs 2 to 6 for vehicles with a list price exceeding £40k.

So many conflicting opinions found but I eventually came across this document
https://assets.publishing.service.gov.u ... dustry.pdf

On page 4 under the section “what this will mean for you” there is an item which states “ This list price will be provided by the manufacturer or dealer/retailer and reflect the vehicle list price on the day before it is first registered and taxed.”

To my mind, this could be interpreted as implying that the list price should not include the first registration fee or the initial VED.

The reason I’m interested is that after using a manufacturers car configurator I got the following breakdown:
Basic Price £37,070
Optional Equipment £1,960
Delivery & First Registration Fee £665
VED £555
OTR £40,250

There is no mention of “list price”. The dealer advised me that the list price is the same as the OTR price but I’m not convinced.
If my interpretation is correct then just taking the VED out of the calculation the list price would be £39,695.

Whilst the extra tax is only approx £1600 over 5 years, a small amount compared with the cost of the car, it is still a TAX and it’s always been my policy to avoid (note: not evade!) paying tax wherever it’s legal.
I don’t think the current government deserves a penny more in tax than necessary, they would only squander it on buffets and booze

Has anyone here ever managed to get official guidance on this?

[Felindre]

This is discussed extensively in a recent discussion, but any cost applied by the government do not contribute to the 40k limit. So vehicle tax and registration fee are excluded from this value.

[LABLAD]

This situation happened to me configuring my xc40 last year,my car total was just over the £40,000 threshold by a about £200 pound,but the dealer assured me that VED is deducted from OTR price so therefore car came in under the £40,000 target!,I obviously can’t confirm this is correct until my car tax renewal is due in OCTOBER,but I was assured by dealer that I would be definitely under the £40,000 threshold!

[Cevoli21]

It is correct. Our daughter bought an XC40 R design Pro in October 2020. The on the road price was over the 40,000 threshold but the VED and delivery charges were removed when calculating the ongoing figure meaning it dipped under the limit

[ChrisLF]

I don't know the answer but it shouldn't be the case that the inclusion of the VED should be included in the List Price - the resultant tax is dependent on tax already included! I see that the guide refers to detailed information for customers - it would be useful to see that.

[ChrisLF]

This is discussed extensively in a recent discussion, but any cost applied by the government do not contribute to the 40k limit. So vehicle tax and registration fee are excluded from this value.

But I bet the VAT is included in the list price and so contributes to the £40k. limit? But of course if the VAT was taken out of the calculation they would just lower the limit!

[Rifleman]

Thanks all for your replies, I’ll correct the dealer tomorrow…

[Felindre]

This situation happened to me configuring my xc40 last year,my car total was just over the £40,000 threshold by a about £200 pound,but the dealer assured me that VED is deducted from OTR price so therefore car came in under the £40,000 target!,I obviously can’t confirm this is correct until my car tax renewal is due in OCTOBER,but I was assured by dealer that I would be definitely under the £40,000 threshold!

You can go to the government website to view the taxation for your vehicle. It'll tell you now what it's going to be.

[Rifleman]

This situation happened to me configuring my xc40 last year,my car total was just over the £40,000 threshold by a about £200 pound,but the dealer assured me that VED is deducted from OTR price so therefore car came in under the £40,000 target!,I obviously can’t confirm this is correct until my car tax renewal is due in OCTOBER,but I was assured by dealer that I would be definitely under the £40,000 threshold!

You can go to the government website to view the taxation for your vehicle. It'll tell you now what it's going to be.

Sorry to contradict but one of the first things they ask you on the dvla site is what is the list price but they do not define “list price”. That was the whole point of my question…

[Deleted User 3629]

Manufacturer List Price. Its the total price including all factory fitted extras and accessories, but excluding registration tax and the first year VED.