I just wanted to remind you that new Vehicle Excise Duty (VED) regulations – commonly known as car tax – are coming into force on 1 April 2017.
What is changing?
Just like the current system, new cars will be divided into 13 bands based on their carbon emissions. This determines how much you pay in the first year of ownership. The amount paid each year after that will depend on the type of fuel the car uses.
These tables show the new rates based on fuel type – alternative fuels include hybrids, bi-ethanol and liquid petroleum gas:
Petrol and diesel cars Alternative fuel cars
|CO2 emissions (g/km)||First year||Standard rate* (after 12 months)||CO2 emissions (g/km)||First year||Standard rate* (after 12 months)|
*Cars costing over £40,000 will pay an additional tax of £310 for 5 years
These rate changes will only apply to new cars registered from 1 April 2017 onwards.
Cars costing more than £40,000
Cars registered after 1 April 2017 with a list price (the published price before any discounts) of more than £40,000 will attract an additional rate of £310 a year for 5 years. This additional rate will only apply after the first 12 months.
|Fuel Type||Standard rate||Additional rate||Total annual amount|
After 5 years, depending on the fuel type, the standard annual rate will then apply.