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2017 Tax Change


If you're thinking of purchasing a new car this year, then it's worth bearing in mind it will cost you significantly more in tax if you buy after the 1st April 2017.  The new tax changes will increase the amount you have to pay on certain models due to a change in the emissions bands for new cars.


HOW IT ALL WORKS
  •  Tax rates for vehicles registered before 1st April 2017 will not be affected by this change.

  • If you purchase a brand new vehicle registered on or after 1st April 2017, after the first licence the majority of vehicles move to the standard rate of vehicle tax which is £140 a year.

  • If the vehicle list price was over £40,000 at first registration, you will pay £450 a year, after the first vehicle licence. This is made up of the £140 standard rate and £310 additional rate. After five years the vehicle tax will revert to the standard rate of £140 per year.

  • Vehicles with a list price exceeding £40,000 with zero emissions (including electric) will pay the additional rate of £310 a year for a 5 year period, after the first licence. After the 5 year period these vehicles will pay zero vehicle tax.

  • From the second year onwards all vehicles will pay a flat rate of £140 with the only exemption for vehicles that have zero emissions – electric.

 


Some of the offers available before and after the tax change (April 1st 2017)








 

VED Band CO2 Emissions First year rate Annual rate
A  Up to 100 g/km  £0 £0
B  101-110 g/km  £0 £20
C  111-120 g/km  £0 £30
D  121-130 g/km  £0 £110
E  131-140 g/km  £130 £130
F  141-150 g/km  £145 £145
G  151-165 g/km  £185 £185
H  166-175 g/km  £300 £210
I  176-185 g/km  £355 £230
J  186-200 g/km  £500 £270
K*  201-225 g/km  £650 £295
L  226-255 g/km  £885 £500
M  Over 255 g/km  £1,120 £515

 

 

CO² emissions (g/km) First year rate Standard 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

 

  • The 2017 changes will mean a car that is CO2 rated at 100g/km or lower and currently has free road tax for life under the current VED band system will cost you £400 over three years, £680 over 5 years, or a whopping £1,380 over ten years!

  • An expensive 100g/km model that is currently free of VED will - under the new rules - cost £1,020 extra over three years, £1,920 extra over three years, and £2,930 extra over 10 years.

 

Please enquire below to take advantage of all our great new car offers before the April 1st deadline, you’d be mad not to.  

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2017 UK Tax Change

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