Due to global consciousness and awareness of the effects of CO2 emissions, the way that the government calculate the cost of Vehicle Excise Duty road tax is changing dramatically. The current VED banding system has been labelled 'unsustainable' with cars currently needing to reach Band D (121-130 g/km) before a significant amount of road tax is charged. This change is set to directly affect all people who are looking to purchase a new vehicle in the future. Under the current VED scheme around a quarter of newly manufactured low emission petrol and diesel cars which fall into VED Band A are exempt from tax, these brackets are set to change from 1st April 2017 and only zero emission vehicles will remain tax free.
When new regulations are put in place, tax prices will rise dramatically for all newly registered vehicles. The greatest hike will be seen in the first year charge which can cost drivers up to £2,000 depending on your cars emissions (see table below for more detailed figures). All years following the CO2 emissions of your vehicle will become irrelevant and just two flat rates will be applied - a £0 VED rate for cars with zero emissions, and an annual flat rate of £140 that applies to all other cars. If you choose to purchase a vehicle which exceeds the 255 g/km bracket you will be applicable for a £2,000 for your first year of registration, likewise, if your vehicle exceeds the price of £40,000 you will be charged an additional £310 on top of all other tax charges. Low emission vehicles have arguably been hit the hardest with some vehicles seeing over a 900% rise in cost.
|VED Bands based on CO² emissions (g/km)||First year rate||Standard rate*|
|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|
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, and £140 thereafter
Vehicles that are registered prior to April 2017 will not fall under the new government VED scheme. Purchasing your car before the new charges come into effect could save you thousands. Visit us today to discover our fantastic offers and how much you can save.
Figures taken from Government official website https://www.gov.uk/government/publications/vehicle... #18355