AA reveals that government will get 'double money' as cars are taxed twice

The AA has complained that under the new vehicle tax system, the government will, in effect, tax some cars twice.

17:35 01 October 2014

Under the new disc-less tax disc system, private car buyers will need to renew the tax immediately while sellers will not be eligible for a refund for just part of a month. This means that if the car was sold on the first day of the month, both the sellers and the buyer will pay for the tax for that particular month. 

 

Edmund King, the AA's president, said: "Someone driving a car that costs £500 a year to tax would lose £41 if they sold it at the beginning of the month.” 

 

"Likewise a buyer purchasing a car mid month would have to pay Vehicle Excise Duty for the entire month.” 

 

However, the Driver and Vehicle Licensing Agency (DVLA) said that the new system will not bring in much revenue for the government.

 

It explained that it was always the case for car sellers to be credited for each whole month that the disc was not used. It added that 65per cent of cars bought do not include tax passed on by the previous owner.