New tax rules are coming into effect on 1st April, this mean the cost of vehicle taxation will rise versus today’s rates, particularly for lower emission cars which have enjoyed road tax at low or nil amounts each year. In addition, the standard tax rate in subsequent years will then be £140 per annum, with additional supplements for vehicles over £40,000.
If you already own a car or commercial vehicle, the new tax changes
won’t affect you as you will continue to pay the same rate. However, if you're
thinking of buying a new vehicle, the new charges may impact you and it might
be advantageous to consider buying now.
Vehicles registered on or after 1 April 2017
For all vehicles first registered on or after 1 April 2017, the amount you pay for the first 12 months is based on CO2 emissions.
|CO2 emissions (g/km)||Petrol and diesel cars||Alternative fuel cars*|
|1 – 50||£10||£0|
|51 – 75||£25||£15|
|76 – 90||£100||£90|
|91 – 100||£120||£110|
|101 – 110||£140||£130|
|111 – 130||£160||£150|
|131 – 150||£200||£190|
|151 – 170||£500||£490|
|171 – 190||£800||£790|
|191 – 225||£1,200||£1,190|
|226 – 255||£1,700||£1,690|
The standard annual rate you pay each year after that depends on the type of fuel the vehicle uses.
|Electric Vehicle||Petrol and diesel||Alternative Fuel*|
*Alternative fuel vehicles include hybrids, bi-ethanol and liquid petroleum gas.
Additional Rate for new vehicles that cost more than £40,000
The first time you tax a vehicle on or after 1 April 2017 with a list price (the published price before any discounts) of more than £40,000 you will pay the rate based on CO2 emissions.
After the first 12 months, you will pay the standard annual rate based on the fuel the vehicle uses and an additional rate of £310 a year for the next 5 years.
|Fuel Type||Standard annual rate||Additional rate||Total annual payment|
|Petrol or diesel||£140||£310||£450|
After 5 years you will pay the standard annual rate depending on what fuel your vehicle uses.