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.
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 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!
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 (pre-April 2017)
|Emissions (g/km of CO2)||First Year Rate||Annual 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|
New VED regime for cars first registered from 1st April 2017
|Emissions (g/km of CO2)||First Year Rate||Standard Rate*|
*cars above £40,000 pay £310 annual supplement for five years.