I found a similar question posed on the ftypeforum, whether right or wrong of course is down to the responder, as with all forums…
The answer was that the first year rate is paid when the car is purchased new and is virtually part of the purchase price. So if the car is sold during that first year, that first year tax is NOT refundable. The new second owner then starts off taxed at the rate the car would be in subsequent years. As already discussed, the luxury 40k+ rate will apply for a full 5 years from date of original registration on top of the normal road tax.
So in short, if you buy a used car less than one year old, that first year tax hit is only paid once in the lifetime of the car and has already been suffered by the first owner, who is the only loser.
