New vehicle tax rates from 1 April 2017

Posted: 13 Feb 2017

New vehicle tax rates from 1 April 2017

‚ÄčThe way vehicle tax is calculated will change for cars and some motor homes that are first registered with DVLA from 1 April 2017.

The change won’t affect any vehicles registered before April, but drivers can check the vehicle tax rates to make sure they know what they need to pay.


THE RATES EXPLAINED

Vehicle tax for the first year is based on CO2 emissions.

After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:

  • £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



NEW VEHICLES WITH A LIST PRICE OF MORE THAN £40,000

If a vehicle has a list price (the published price before any discounts) of more than £40,000, the rate of tax is based on CO2 for the first year.

After the first year, the rate depends on the type of vehicle (petrol, diesel, alternative fuel or zero emissions) and an additional rate of £310 a year for the next 5 years.

After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130, or £0, depending on vehicle type).


OVERVIEW

Vehicle tax rates are based on engine size, or fuel type and carbon dioxide (CO2) emissions, depending on when the vehicle was registered.

The rates are split into bands. The lower the emissions, the lower the vehicle tax.


VEHICLES REGISTERED ON OR AFTER 1 APRIL 2017

For vehicles first registered on or after 1 April 2017, the amount you pay for the first 12 months is based on CO2 emissions.

You can’t make a 6-month payment for the first year.

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
 

The amount you pay each year after that depends on the type of fuel the vehicle uses.

Electric vehicle Alternative fuel Petrol or diesel
£0 £130 £140

Alternative fuel vehicles include hybrids, bi-ethanol and liquid petroleum gas.


NEW VEHICLES THAT COST MORE THAN £40,000

The first time you tax a vehicle on or after 1 April 2017 with a list price (the published price before any discounts) of more than £40,000, you’ll pay the rate based on CO2 emissions.

Check the list price with your dealer so you know how much vehicle tax you’ll have to pay.

After the first 12 months, you’ll pay a rate based on the fuel the vehicle uses and an additional rate of £310 a year for the next 5 years.

Fuel type Standard annual rate Additional rate Total annual payment
Electric £0 £310 £310
Alternative £130 £310 £440
Petrol or diesel £140 £310 £450

After 5 years, you’ll pay the standard annual rate depending on what fuel your vehicle uses.

 

Information taken from www.gov.uk

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