Road Tax Changes In April 2017

Did You Know In April 2017 The Current Road Tax Regime Will Dramatically Change?

At Hodgson Motor Group, we like to keep our customers in the loop with everything that’s happening in the automotive world, especially if it affects your pocket. Change isn't always a good thing but it can be managed if you are prepared for it and these road tax changes are no exception. To assist you we've laid out the major changes so you are in the know.

Which Vehicles Do The New Road Tax Changes Affect?

If you are currently driving a vehicle with CO2 emissions lower than 100g/km, you will already know the benefits of free road tax. However, with the positive increase of greener and more advanced environmentally-friendly cars into the marketplace, this has unfortunately influenced the government to make changes accordingly and thus the current VED (Vehicle Exercise Duty) road tax rules are going to be changed.

The Bad News

  • In July 2015 the new car tax rates were approved for all vehicles registered after 1st April 2017.
  • If you buy a vehicle after 1st April 2017 that has CO2 emissions under 100g/km, you will now have to pay up to £120 in the first year. On and after year two, a flat rate of £140 will be applied, regardless of emissions.
  • Only zero-emission models will be exempt from this charge.
  • Vehicles with a list price higher than £40,000 will be charged an additional annual ‘supplement’ of £310 for the first five years.

The Good News

The good news is that all cars on the road now and any new cars registered before 1st April 2017 will continue to pay the current VED rates even after the new bands come into force. So if you were considering buying a vehicle with lower CO2 emissions than your current car, you would be mad not to do it now!

Vehicle Exercise Duty Tax Bands After 1st April 2017

Below we have provided you with two comparison tables featuring the current and the new VED tax bands after 1st April 2017. Be aware of these changes and choose the best time to purchase your new vehicle to avoid the dreaded road tax!

Current VED Tax Bands
New Road Tax Changes In April 2017

Current VED tax bands (pre-April 2017)

Emissions (g/km of CO2)First Year RateAnnual Rate
Up to 100£0 £0
101 - 110£0 £20
111 - 120£0 £30
121 - 130£0 £110
131 - 140£130 £130
141 - 150£145 £145
151 - 165£180 £180
166 - 175£295 £205
176 - 185£350 £225
186 - 200£490 £265
201 - 225£640 £290
226 - 255£870 £490
Over 255£1,100 £505

New VED regime for cars first registered from 1st April 2017

Emissions (g/km of CO2)First Year RateStandard Rate*
0£0 £0
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
Over 255£2,000 £140

*cars above £40,000 pay £310 annual supplement for five years.

Have more questions? Don't hesitate to contact us and we will try to answer all of them. You can call us or fill our online enquiry form and one of our team members will respond to it as soon as possible.