If you own a luxury car, it has probably cost you a lot of money – from its purchase, maintenance, to car taxes.

This article will discuss how much tax is for a luxury car in the UK and explain how the tax applies to different car models.

The most expensive cars in the United Kingdom are often taxed at the highest level of Group B6, which are vehicles that are worth more than £100,000, including luxury cars.

Here we are going to review how much tax the following cars in the UK tax. We have also looked at which cars tax in the US tax, and so you can compare cars on a global basis.

The luxury car tax is set at a rate of 18 per cent (for some models) and above.

Under the scheme, the tax is paid by manufacturers and retailers, while owners of the cars have to pay the tax when they register their car.

What is the new car tax system in the UK?

The new car tax system will begin on April 1 and will replace the RAC Fair Fuel Price system. The new system is designed to make motorists more aware of the true cost of petrol and diesel.

But how much will it cost you to own a luxury car in the UK?

It depends on what type of car you have. The table below lists the cost of owning a car in the UK by price range.

Audi A7 at £67,740–£83,045

After a price increase on the 2018 model of £5,000, the price for the A7 remains the same. The tax for this particular car is the highest as it is luxury car tax.

The basic rate tax is 41%, and an extra one per cent applies if you have a loan. The A7 is one of the more expensive luxury cars to tax and is a big jump on the cheapest cars to tax.

Audi A8 at £68,350–£93,840

This is the only car on the list that is not subject to the highest tax band in the UK. The rate is also lower than some of the cars on this list.

The car tax for the A8 is the same as the A7. It has a starting rate of 41% and an additional rate of 1.2% on top.

This rate only applies if you have a loan.

There are two versions of the A8 available in the UK, the A8L and the A8 S-Line, with both having a different tax band.

BMW 5 Series at £56,830–£70,070

The 5 Series, or 5 Series Gran Turismo, will be taxed on the standard rate band. It is also available in a 7 Series version as well as the current 5 Series.

The tax for the 5 Series on the standard rate band is 41% with the same premium rate tax that applies on cars with higher tax bands.

For the 5 Series S line, a higher rate band is applied. This means the 5 Series S Line, which has a luxury tax, has a starting rate of 55%.

Mercedes S-Class at £65,650–£100,230

The S-Class is likely to be the most expensive car on this list, and it can be taxed on all the tax bands.

The basic rate tax is 41% for this model. This is just below the top tax band.

The Avant version is taxed on a different band than the Coupé version.

The highest tax band is given to cars with high-powered engines, such as the S65, a limited-edition variant of the S-Class with a 6.0-litre V12 engine. This car is subject to the highest tax band, which is at 55%.

In the USA, the S-Class has a 51% luxury car tax band. This is much lower than the tax rates in the UK.

Conclusion

Owning expensive things means their maintenance is expensive as well. Sometimes, you even have to pay twice as much to keep its beauty!

Don’t let car taxes scare you. The moment you decided to purchase a luxury car, it was a sure decision to continue being responsible after owning it.

Luxury car taxes are pretty expensive in the UK, but you have to live with the notion that it is one of the expensive prices you have to pay for being rich.

A lot of people want to own a luxury car, but they just can’t afford it. Thus, they look up to people like you who are already driving around town with your supercar.

Luxury cars are a testament of one’s hard work. It entails that you, as a person, have made a lot of sacrifices in life and presented yourself a sweet ride as a prize.

A car tax is set for luxury cars to avoid so many people from flocking and purchasing supercars. This ensures that the buyer can really afford what they want.