From April 1st 2017, VED First Year Rates apply to brand new vehicles. The price is based entirely on carbon emissions. The lower the emissions the lower the cost which, of course, encourages motorists to favour more environmentally friendly models. For subsequent years, there are Standard Rates to consider.

First year rates will vary from £0 to £2,000 based on vehicle carbon emissions, whilst the subsequent years standard rate for vehicles with greater than 0 emissions will be £140 per year.

It is also worth noting that all vehicles that have a new list price of £40,000+ are subject to the £310 Additional Rate from year 2 to 6 inclusive. It is on top of the Standard Rate which increases the cost for zero-emission models to £310 and for all others to £450. From year 7 onward, only Standard Rates apply.

Please see the table below to see what the impact could be on your choice of car and why it may be beneficial to buy before April 1st if you are considering purchasing a new car.

1st Year rate registered before 1st April 2017 Subsequent years Vehicle Excise Duty (Road Fund Licence) registered before 1st April 1st Year rate registered after 1st April 2017 Subsequent years Vehicle Excise Duty (Road Fund Licence) registered after 1st April
Picanto 1.0 Man £0 £0 £140 £140
Picanto 1.25 Man £0 £0 £140 £140
Picanto 1.25 Auto £0 £0 £160 £140
Rio 1.1 CRDi Man £0 £0 £120 £140
Rio 1.25 Man £0 £30 £160 £140
Rio 1.25 Man ISG £0 £20 £140 £140
Rio 1.4 Man ISG £0 £30 £160 £140
Rio 1.4 Auto £145 £145 £200 £140
Soul 1.6 GDi Man £185 £180 £500 £140
Soul 1.6 CRDi Manl £0 £110 £160 £140
Soul 1.6 CRDi Auto £0 £110 £160 £140
Soul 1.6 T-GDi Auto £185 £180 £500 £140
Venga 1.4 Man ISG £0 £110 £160 £140
Venga 1.4 CRDi Man £0 £30 £160 £140
Venga 1.6 Auto £145 £145 £200 £140
Venga 1.6 Man ISG £130 £130 £200 £140
Cee'd 1.0 T-GDi Man £0 £30 £160 £140
Cee'd 1.4 CRDi Man £0 £20 £160 £140
Cee'd 1.4 Man £130 £130 £200 £140
Cee'd 1.6 CRDi Man ISG £0 £0 £120 £140
Cee'd 1.6 GDi Man ISG £0 £110 £160 £140
Cee'd 1.6 CRDi Auto DCT ISG £0 £20 £140 £140
Carens 1.6 GDi Man £145 £145 £200 £140
Carens 1.7 CRDi Man ISG £0 £20 £120 £140
Niro 1 and 2 1.6 GDi 1.56kWh Hybrid £0 £0 £100 £140
Niro 3 and First Ed 1.6 GDi 1.56kWh Hybrid £0 £20 £140 £140
Sportage 1.6 GDi Man £185 £185 £500 £140
Sportage 1.6 GDi Man ISG £145 £145 £200 £140
Sportage 1.6 T-GDi Man (AWD) £355 £230 £800 £140
Sportage 1.6 T-GDi Auto (AWD) £300 £210 £800 £140
Sportage 1.7 CRDi Man ISG £0 £30 £160 £140
Sportage 1.7 CRDi Auto DCT ISG £0 £110 £160 £140
Sportage 2.0 CRDi Man £130 £130 £200 £140
Sportage 2.0 CRDi Auto £185 £185 £500 £140
Sportage 2.0 CRDi 182bhp Man £185 £185 £500 £140
Sportage 2.0 CRDi 182bhp Auto £300 £210 £500 £140
Optima 1.7 CRDi Man ISG £0 £20 £140 £140
Optima 1.7 CRDi Auto DCT ISG £0 £30 £160 £140
Sorento 'KX-1' 2.2 CRDi Man ISG £145 £145 £200 £140
Sorento 'KX-2 and KX-3' 2.2 CRDi Man ISG £185 £185 £500 £140
Sorento 2.2 CRDi Auto ISG £300 £210 £800 £140