WARNING - NEW TAX RULES START IN:
Vehicle Excise Duty increases from 1st April
First year VED ranges from £10 to £2,000
VED for year 2 onwards is £140 for ALL cars
£310 p/a supplement for ALL cars with a list price of £40,000+

VED Changes from 1st April 2017

From April 1, 2017 changes to road tax mean that any new car registered after this date will have different costs for VED. Depending on the value of the car and its CO2 emissions, you will pay a one-off fee in the first year, followed by a set fee for each succeeding year. It’s important to know that all cars registered before April 1, 2017 will not be affected by the new VED changes and will go by the old system of CO2 emissions. The old system will eventually be phased out; if you are looking at getting a new model, it is best to do so in the next couple of months.

For some drivers, particularly those who might have been previously exempt from road tax, the new VED changes will considerably affect their bank balance. If you are considering buying a new car, or if your current finance plan is due for renewal, we recommend getting a new or nearly-new car before April 1, 2017. By doing this, you will benefit from the older system of road tax, potentially saving you a lot of money over the next few years. Here are the key facts about newly-registered cars purchased after April 1, 2017:

  • Any newly-registered zero-emissions car that costs less than £40,000 will be exempt from road tax.
  • Newly-registered cars under £40,000 will pay a one-off flat rate, depending on their emissions, then pay a subsequent £140 a year.
  • Newly-registered cars that cost more than £40,000 will pay a supplement Premium rate of £310 a year for three to five years under the new changes, regardless of their CO2 emissions. 

For newly-registered models that cost under £40,000, the first year’s tax rate will vary considerably:

  • Cars with very low emissions (1-50g/km of CO2) will pay as little as £10 in their first year.
  • Cars with average emissions (111-130g/km of CO2) will pay £160 in their first year.
  • Cars with high emissions (over 255g/km) will pay up to £2,000 in their first year.

For all models in these categories and in between, the subsequent £140 fee a year applies. Even if a discount is applied by the dealer, the original list price if over £40,000 will still incur the new charges.

Currently, there are many popular models on the market with low emissions that are exempt from road tax – this will all change after April 1, 2017. Road tax for models such as the Ford Fiesta 1.0 T EcoBoost, the Nissan Qasquai N-Connecta dCi 110, and the Vauxhall Astra Elite 1.6 CDTi, will go from £0 to £400 over a three-year period. To make the greatest savings in fuel and tax with a low-emissions car, buy one before April 1, 2017 to benefit from the old road tax system.

At RMB, we have a great range of affordable used and nearly-new vehicles on offer that will be exempt from the new VED changes. We also have some excellent deals on zero-emissions cars under £40,000 that are a great long-term investment.

Existing VED CostsVED Costs from 1st April 2017
Model co2 Year 1 Year 2/3 1st 3 Years Year 1 Year 2/3 1st 3 Years Difference
Toyota Aygo 1.0 Litre Petrol 108g/km Free £20 £40 £140 £140 £420 £460
Toyota Auris hatchback 1.8 Petrol Hybrid 82g/km Free Free Free
£100 £140 £380 £380
Lexus RX 450h 120g/km Free £30 £60 £160 £140
£440 £380
Lexus CT 200h 94g/km Free
Free
Free £120 £140
£400 £400
Renault Clio Energy TCe90 S&S 99g/km Free
Free
Free
£120 £140
£400
£400
Renault Megane TCe 130 122g/km Free £110 £220 £160 £140 £440 £220
Dacia Duster dCi 110 4x2 115g/km Free £30 £60 £160 £140 £440 £380
Dacia Sandero Stepway TCe 90 115g/km Free £30 £60 £160 £140 £440 £380
Ford Fiesta 1.0 EcoBoost 100PS (Petrol) 5 Speed 99g/km Free Free Free £120 £140 £400 £400
Ford Fiesta 1.0T 104g/km Free £20 £40 £120 £140 £400 £360
Ford EcoBoost 100PS (Petrol) 5 Speed 105g/km Free £20 £40 £120 £140 £400 £360

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