Changes to the way the vehicle tax is determined come into force on 1st April 2017.

Until then, the amount of vehicle tax you pay is determined by your car’s carbon-dioxide (CO2) emissions, measured in grams per kilometre (g/km). There are two levels of payment: one applies to the first year of a new car’s registration and only has to be paid by the car’s first owner. The second rate is an annual payment that has to be paid each year your car is on the road. Any car that emits under 100g/km is exempt from both of these payments, while cars that emit 130g/km of CO2 and under are excused from the first-year payment and only incur the annual fee. 

From April 2017 onwards, the whole vehicle tax system changes. While CO2 emissions will still contribute, only zero-emission cars will be exempt from the annual charge. This effectively means that if you buy new petrol or diesel engine car after April 2017, you will be liable to pay vehicle tax.

While the first-year tax rate will vary based on a car’s CO2 emissions, the annual fee will be a flat rate of £140 for all cars, with an extra £310 annual surcharge applying to all new cars costing over £40,000 new

These rates will only apply to cars registered from April 2017 onwards – cars already on the road will continue to be taxed under the old system

Savings on a selection of Mercedes-Benz