NEW CAR TAX 2017;EVERYTHING YOU NEED TO KNOW
New car tax rules come into effect on April 1st and could change how much you pay to keep your motor on the road. We have broken down how the major changes could affect you and your vehicle.
If you already have a car, the tax rates for vehicles registered before 1 April 2017 will not be affected by this change. But if you’re looking to buy a new car, how the changes affect you depends on the type of car you are buying. After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:
The new car tax changes were set in motion by George Osborne - former Chancellor of the Exchequer - during the days when David Cameron was Prime Minister. Under the current VED tax scheme, most new car buyers are paying very little (if any) road tax, which is costing the Treasury millions.The new road tax regulations mean that all new cars will face a significant hike in their car tax amount in the first year of registration depending on CO2 emissions, after that it's a flat rate of £140 per year.
|CO2 EMISSIONS (g/km)||FIRST YEAR RATE||STANDARD RATE*|
|1 - 50||£10||£140|
|51 - 75||£25||£140|
|76 - 90||£100||£140|
|91 - 100||£120||£140|
|101 - 110||£140||£140|
|111 - 130||£160||£140|
|131 - 150||£200||£140|
|151 - 170||£500||£140|
|171 - 190||£800||£140|
|191 - 225||£1200||£140|
|226 - 255||£1700||£140|
*Cars with a list price of over £40,000 when new, pay an additional rate of £310 per year on top of the standard rate, for five years.
Some owners will be better off – eventually. Those driving more polluting cars will pay a much higher tax in the first year, but much lower tax in subsequent years – so eventually they will break even. A car emitting over 255g/km, for example costs £1,100 in the first year, and £505 a year thereafter. Under the new system it costs £2,000 in the first year, and £140 thereafter. It will therefore take three and a half years before the new system becomes more cost-effective. If this high emissions car cost over £40,000, however, it would take just shy of eight years before they were better off under the new system, because the £310 a year surcharge for years 2-6 would set them back so far. A car emitting 186g/km, meanwhile, would cost £800 in the first year - as opposed to the current charge of £490. However, thereafter it costs £140 a year instead of £265. So ultimately, drivers will be better off under the new system after just shy of four years.
Get a brand new car from Vic Young before April 1st to be exempt from the new car tax! - /cars/