Beat The Car Tax Increase


The way Vehicle Excise Duty (VED) is calculated is changing for some vehicles registered from 1 April 2017. All vehicles registered before this date will not be affected.


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The changes, announced by the Chancellor in the 2015 budget, set out that from 1st April 2017, the first vehicle licence will be calculated on the vehicle’s CO2 emissions.

The majority of vehicles will then move to a standard rate of £140 annually from the second licence.

Cars with zero emissions will not pay the standard rate of vehicle tax. However, if a car’s list price is over £40,000 at first registration, the customer will pay the additional rate for five years after the end of the first licence.



Pre-April 2017 car tax rates explained

Current car tax rates

Car tax band CO2 emissions First year rate Annual rate after first year
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





Car tax rates from April 2017

Car tax rates explained

CO2 emissionsFirst year rateStandard rate
1-50 g/km £0 £0
51-75 g/km £10 £140
76-90 g/km £25 £140
91-100 g/km £100 £140
101-110 g/km £120 £140
111-130 g/km £140 £140
131-150 g/km £160 £140
151-170 g/km £200 £140
171-190 g/km £500 £140
191-225 g/km £800 £140
226-255 g/km £1,200 £140
226-255 g/km £1,700 £140
Over 255 g/km £2,000 £140





Would you be better or worse off under the new system?
(All models listed below are under £40,000)

CarCO2
emissions
Loss/Gain
after one year
Loss/Gain
after five years
Loss/Gain
after ten years
Toyota Prius
(hybrid)
70 g/km -£25 -£585 -£1,285
Ford
Mondeo
94 g/km -£120 -£680 -£1,380
Skoda Superb
estate
126 g/km -£160 -£280 -£430
Honda Civic
Tourer
151 g/km -£320 -£160 +£40
Subaru WRX
STI
242 g/km -£830 +£570 +£2,320