Changes to the VED (road tax) bands from April 1st – what you need to know

WHAT IS CHANGING?

Road tax is currently assessed on the CO2 emissions of your car - the higher the CO2 figure, the higher your road tax. This was originally designed to make us all buy cars which do less harm to the environment. However, the government has decided to accelerate this change to lower polluting cars, and so has changed the system – April 1st sees the new rule come into effect.

The new Vehicle Excise Duty will use a sliding scale based on CO2 emissions for the first year following registration, after which there will be a flat fee of £0 for zero emission cars, and £140 for pretty much everything else.

There is a supplementary fee of £310 for cars with a list price (inc options & VAT) of over £40,000, paid annually for five years.

HOW WILL IT AFFECT ME?

  • This new tax will only affect buyers of brand new cars that are registered on or after April 1st 2017. If your car is registered before this date it will be taxed under the old tax rules.
  • Many new cars that currently attract a low, or non-existent, annual VED will have a higher annual rate.
  • If you are thinking about buying a brand new car in the next few months… BUY IT BEFORE APRIL 1st !!