Everything you need to know about the new UK VED road tax rules coming to the UK in 2017
A major shake-up of the way UK road tax rates are calculated is just around the corner, and buyers who don’t have their wits about them could end up being hit hard in the wallet.
It’s been more than a year since the Government killed off the annual renewal system for paper tax discs, but while you can now make easy road tax payments by a direct debit set-up online, that doesn’t mean you can afford to take your eye off the ball. A dramatic change in road tax prices – officially known as Vehicle Excise Duty, or VED – will come into effect on the 1st of April 2017.
Depending on the purchase price and emissions of the new car you want to lease or buy, it may pay to delay your purchase until after the changes are implemented. In other cases it will pay to make sure you’ve registered your new car before the critical deadline arrives.
This guide to the changes in VED explains what the changes mean for you. So check out the details and see how you could save.
Don't forget to follow Auto Express on Twitter and like our Facebook page for the latest car news, features and advice.
A major shake-up of the way UK road tax rates are calculated is just around the corner, and buyers who don’t have their wits about them could end up being hit hard in the wallet.
It’s been more than a year since the Government killed off the annual renewal system for paper tax discs, but while you can now make easy road tax payments by a direct debit set-up online, that doesn’t mean you can afford to take your eye off the ball. A dramatic change in road tax prices – officially known as Vehicle Excise Duty, or VED – will come into effect on the 1st of April 2017.
Depending on the purchase price and emissions of the new car you want to lease or buy, it may pay to delay your purchase until after the changes are implemented. In other cases it will pay to make sure you’ve registered your new car before the critical deadline arrives.
This guide to the changes in VED explains what the changes mean for you. So check out the details and see how you could save.
Don't forget to follow Auto Express on Twitter and like our Facebook page for the latest car news, features and advice.
The truth behind the 2017 road tax band changes
The current road tax regime is costing the exchequer a packet as carmakers have slashed the CO2 emissions of their cars to take advantage of the generous VED tax bands for lower-emissions vehicles.
In fact, it’s reckoned that a quarter of new cars registered don’t pay any road tax at all as they fall into VED Band A for vehicles with CO2 emissions of less than 100g/km.
At present, new cars have to reach Band D (121-130g/km) before any significant annual road tax is charged. With tax revenues set to fall further as cars continue to get cleaner, the chancellor has deemed the situation ‘unsustainable’.
The current road tax regime is costing the exchequer a packet as carmakers have slashed the CO2 emissions of their cars to take advantage of the generous VED tax bands for lower-emissions vehicles.
In fact, it’s reckoned that a quarter of new cars registered don’t pay any road tax at all as they fall into VED Band A for vehicles with CO2 emissions of less than 100g/km.
At present, new cars have to reach Band D (121-130g/km) before any significant annual road tax is charged. With tax revenues set to fall further as cars continue to get cleaner, the chancellor has deemed the situation ‘unsustainable’.
What are the 2017 road tax changes in detail?
Cars registered after April 1st 2017 will pay a one-off tax charge for the first year, with rates decided by a heavily revised version of the current CO2-based tax band system.
The adjustments mean most buyers will see their first year tax charge virtually doubled, while only zero-emissions vehicles will get away with paying nothing at all.
From the second year onwards, the CO2 scale becomes irrelevant, as two flat rates will then be applied – a £0 (zero) VED rate for zero-emissions vehicles only, and a flat annual rate of £140 for all other cars.
Cars registered after April 1st 2017 will pay a one-off tax charge for the first year, with rates decided by a heavily revised version of the current CO2-based tax band system.
The adjustments mean most buyers will see their first year tax charge virtually doubled, while only zero-emissions vehicles will get away with paying nothing at all.
From the second year onwards, the CO2 scale becomes irrelevant, as two flat rates will then be applied – a £0 (zero) VED rate for zero-emissions vehicles only, and a flat annual rate of £140 for all other cars.
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