New Vehicle Excise Duty for April 2017 Explained

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.

  • Firstly, good news for those fuel efficient drivers out there, if your vehicle is zero-emission you'll pay nothing (£0) rather than the £140 standard rate charge.
  • All new vehicles that are priced £40,000+ are subject to an additional £310 tax from year 2 to 6. If your vehicle is of zero-emissions and priced over £40,000, you will only be charged the additional rate of £310.
  • Vehicles priced over £40,000 and 1+ Co2 emissions will be charged the standard rate of £140 plus the additional rate of £310 with a total of £450.

For example

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.

In contrast

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
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 £1,200 £140
226 - 255 £1,700 £140
Over 255 £2,000 £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
£40

£420 £380

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