This is simple guide to the UK’s new car tax rules for 2017 – reading this could save you plenty.
On the 1st April 2017 there is a big change in road tax prices and rules on the VED (Vehicle Excise Duty).
What do 2017 road tax changes mean for cars already registered before 1st April 2017?
Current road tax bands won’t be changed for cars that are already registered before April 2017. This means that the road tax you pay will be no different, even when the new VED bands come into force. These rates are much more favourable to lower polluting vehicles than the new ones coming into action in April 2017.
What do 2017 road tax changes mean when I buy a new car after April 1st 2017?
The first time the vehicle is taxed, the rate you pay will be based on it’s CO2 emissions. This is usually paid when you purchase a brand new car. From the 1st April 2017, these rates will change. They will range from £0 for zero electric cars, up to £2000 for the highest polluting cars. This will mean most car buyers will see their first year road tax practically doubled, while only zero-rated emmisions vehicles will get away with paying nothing at all. Here are the first year rate charges on cars registered after 1st April 2017:
What do 2017 road tax changes mean the 2nd year the vehicle is taxed after April 1st 2017?
From the second year onwards, the CO2 scale becomes irrelevant, as 3 standard rates will be applied:
•£140 a year for petrol or diesel vehicles
•£130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
•£0 a year for vehicles with zero CO2 emissions
What do 2017 road tax changes mean for cars costing over £40,000 (list price) after April 1st 2017?
Cars that have a list price of more than £40,000, you will pay an additional tax rate of £310 on top of the standard rate – this additional rate is payable for 5 years from the second time the vehicle is taxed. After the 5 year rate ends, you then revert back to the standard rate for your vehicle.
What about expensive +£40,000 cost zero-rated all electric cars?
Unfortunately, these cars will no longer get a free ride. There will be a £310 supplement from the second time the car is taxed.
Petrol or Diesel Car +£40,000 – (from second time its taxed) = £450 Per Year for the next 5 years
Alternative Fuel Vehicle +£40,000 – (from second time its taxed) = £440 Per Year for the next 5 years
Fully Electric Vehicle +£40,000 – ((from second time its taxed) = £310 Per Year for the next 5 years
What road tax bracket is my car in?
Below are 2 tables. Table 1 is the rates you will pay for cars registered after April 2017. Table 2 shows the rates for cars registered before April 2017.
Car Tax Rates From April 2017 Onwards
Car Tax Rates Pre April 2017
For more information you can watch the DVLA Video