Road tax is changing… How does it affect you?
The government is changing the rates of road tax, officially titled Vehicle Excise Duty (VED) and this will affect any new vehicle registered on or after 1sT April 2017. If you’re currently thinking about purchasing a new car or trading your current car in it’s important you understand just what the road tax changes will mean for you.
So what’s changing?
From 1st April 2017 the road tax system is undergoing a major change, which will see all cars registered on or after this date affected.
For the first 12 months the amount of road tax you will pay is variable, based on the CO2 emissions of your car. The table below, which is broken down into 13 bands illustrates the amount of tax you will pay.
CO2 emissions (g/km) | Petrol (TC48) and diesel cars (TC49) | Alternative fuel cars (TC59) |
0 | £0 | £0 |
1 - 50 | £10 | £0 |
51 75 | £25 | £15 |
76 - 90 | £100 | £90 |
91 - 100 | £120 | £110 |
101 - 110 | £140 | £130 |
111 - 130 | £160 | £150 |
131 - 150 | £200 | £190 |
151 - 170 | £500 | £490 |
171 - 190 | £800 | £790 |
191 - 225 | £1,200 | £1,190 |
226 - 255 | £1,700 | £1,690 |
Over 255 | £2,000 | £1,990 |
As it can be seen, the only cars which are exempt from paying tax are those which emit zero emissions i.e. all-electric vehicles. This is a huge difference to the current system can see you paying low levels of tax if you drive a petrol, diesel or hybrid vehicle which produces low emissions.
After the first year a standard rate of tax will apply. This amount is NOT based on CO2 emissions and instead is dependent on the type of vehicle you drive. These rates are as follow:
- £140 a year for petrol or diesel vehicles
- £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
- £0 a year for vehicles with zero CO2 emissions under the value of £40,000
Again the only cars which are exempt from paying any road tax are those with zero emissions.
Further to the above, any car which is over £40,000 will be required to pay an additional £310 supplement per year. This is applicable for five years after the first year, so between years 2 to 6. After this, the additional supplement stops and you will revert to paying the standard rate. This also applies to any cars with zero emissions priced over £40,000.
To help make things straightforward for you to understand we’ve compiled a table with the new road tax rates below.
CO2 Emissions (g/km) | First Year | Second Year Onwards | Second Year Onwards Cars over £40,000 | ||
Petrol/Diesel | Alternative | Petrol/Diesel | Alternative | ||
0 | £0 | £0 | £0 | £310 | £310 |
1-50 | £10 | £140 | £130 | £450 | £440 |
51-75 | £25 | £140 | £130 | £450 | £440 |
76-90 | £100 | £140 | £130 | £450 | £440 |
91-100 | £120 | £140 | £130 | £450 | £440 |
101-110 | £140 | £140 | £130 | £450 | £440 |
111-130 | £160 | £140 | £130 | £450 | £440 |
131-150 | £200 | £140 | £130 | £450 | £440 |
151-170 | £500 | £140 | £130 | £450 | £440 |
171-190 | £800 | £140 | £130 | £450 | £440 |
191-225 | £1200 | £140 | £130 | £450 | £440 |
226-255 | £1700 | £140 | £130 | £450 | £440 |
More than 255 | £2000 | £140 | £130 | £450 | £440 |
Please note the new changes will not affect any vehicles registered before April 2017. To find out the rate you need to pay for any car registered before this time see Government vehicle tax rate tables.
If you are looking to buy a new car, now’s the time to do so! Call into your nearest RMB Dacia dealership today to avoid the road tax increases and discuss our latest outstanding offers. If you have any queries about the car tax changes our friendly sales team will also be available to talk you through them.