Effective 1 April 2017, vehicle tax rates or Vehicle Excise Duty (VED) are set to change. The first 12 months will be based on CO2 emissions irrespective of fuel type, the bands span from 0 to over 255 carbon emissions with costs ranging from £0 to £2,000 (see the table below). The change in VED rates only apply to brand new vehicles registered from the 1st of April 2017, meaning that any car you bought/buy before then is unaffected.
In addition to the new Co2 banding structure explained above, you could occur some other costs.
If on the 2nd of April 2017 you decided to purchase a brand new petrol car at the price of £27,995 with 144/km, your vehicle will fit in the 131-150/km tax bracket. You will pay £200 in your first year then £140 in the years succeeding. Having owned your car for 6 years, you'll pay a total of £900.
If you purchase a vehicle on the 2nd of April at the price of £45,000 and its carbon emission figure is 226g/km. The First Year Rate is, therefore, £1,700, the Standard Rate is £140 and – from year 2 to 6 inclusive – it is subject to the £310 Additional Rate too. Total cost is £3,950 assuming there is no change to the rates.
|Carbon Emissions (G/KM)||First Year Rates (Petrol & Diesel)||Standard Rates|
|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||£1,200||£140|
|226 - 255||£1,700||£140|
|1st Year rate registered before 1st April 2017||Road Fund License registered before 1st April||1st Year rate registered after 1st April 2017||Road Fund License registered after 1st April||3 Year Ownership registered before April 2017||3 Year Ownership registered after April 2017||Saving if bought before April 1st 2017|
|Aygo & Yaris 1.0||£0||£0||£120||£140||£0||£400||£400|
|Kia Sportage 1.7 CRDi Man ISG||£0||£20||£160||£140||£60||£440||£380|
|Lexus IS 300h Hybrid auto Luxury||£0||£20||£140||£140||£40||£420||£380|
|Mazda2 75ps SE SKYACTIV-G Petrol||£0||£20||£140||£140||£40||£420||£380|
|Nissan Qashqai 1.6 dCi (130) N-Connecta||£0||£30||£160||£140||£60||£440||£380|
|Peugeot 208 1.2 PureTech (82) Allure||£0||£20||£140||£140||£40||£420||£380|
|Skoda Fabia 1.2 TSI 90 SE||£0||£20||£140||£140||