Car Tax Changes

What Should I Know?


From April 1st 2017 the current Vehicle Excise Duty (VED or better known as road/car tax) rules are going to be changed for any new vehicle registered on or after 1st April 2017.

The current tax scheme is based on the CO2 emissions your vehicle produces. Currently if your car emits less than an average of 99g of CO2 every kilometer it drives it is exempt from car tax. The new rules that are going to be introduced April 1st 2017 will slash this exemption and will only apply to vehicles that produces no CO2 emissions - mainly electric cars. The drivers of any other vehicle will have to pay £140 in tax every year - apart from the first year that it's on the road.

So is it better to wait until April 1st 2017 to purchase a new car or is it more cost effective before the changes come into effect? The answer is simple - it all depends entirely on your vehicle and the very important CO2 emissions, the more CO2 your car produces the more tax you will need to pay. Take a look at the table below to view the standard tax rate and the first year rate, introduced rate from April 1st.

Will I be paying more?


CO2 emissions (g/km)First year rateStandard rate*
0£0 £0
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
Over 255£2000 £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.