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Changes to Road Tax (VED) from 1st April
As outlined in the Chancellor of the Exchequer’s 2015 budget, the way vehicle excise duty (VED) is calculated will change from Friday 1 April 2017 for the majority of vehicles. The first licence will continue to be calculated using the vehicle’s CO2 value, but subsequent licences will be based on a standard rate of £140. However, if the vehicle’s list price was £40,000 or more at first registration, the customer will pay an additional fee of £310 – a total of £450 per year, for five years.
Want to avoid paying the tax?
We have vehicles available that can be registered this March – with the new ’17 number plates – that you can drive away without committing to the new road tax, or Vehicle Excise Duty (VED).
What’s more, we are offering unbeatable valuations on quality used vehicles this March. This means you could benefit from a newer vehicle with advanced, more economical engines, saving you money on your future motoring costs and avoid the upcoming tax increase.
At registration, the VED bands and rates for a vehicle will change as per the table below.
Current VED bands and rates
| VED Band | CO2 From | CO2 To | VED Tax Class 48 & 49 |
| A | 0 | 100 | £0 |
| B | 101 | 110 | £0 |
| C | 111 | 120 | £0 |
| D | 121 | 130 | £0 |
| E | 131 | 140 | £130 |
| F | 141 | 150 | £145 |
| G | 151 | 165 | £185 |
| H | 166 | 175 | £300 |
| I | 176 | 185 | £355 |
| J | 186 | 200 | £500 |
| K | 201 | 225 | £650 |
| L | 226 | 255 | £885 |
| M | 256 | 999 | £1,120 |
VED bands and rates from 1 April 2017
| CO2 From | CO2 To | VED Tax Class 48 & 49 |
| 0 | 0 | £0 |
| 1 | 50 | £10 |
| 51 | 75 | £25 |
| 76 | 90 | £100 |
| 91 | 100 | £120 |
| 101 | 110 | £140 |
| 111 | 130 | £160 |
| 131 | 150 | £200 |
| 151 | 170 | £500 |
| 171 | 190 | £800 |
| 191 | 225 | £1,200 |
| 226 | 255 | £1,700 |
| 256 | 999 | £2,000 |
How it will work
- Tax rates for vehicles registered before 1st April 2017 will not be affected by this change.
- The way in which tax is calculated for all other vehicle types will not be changing.
- All vehicles with zero emissions will be exempt from the standard rate of vehicle tax. All other vehicles will pay a standard rate of £140 a year.
- An additional rate will be added to the vehicle tax for all new vehicles with a list price of over £40,000. This additional rate of £310 will be payable each year for 5 years from the end of the first vehicle licence. After the 5 year period the standard rate will apply.
- Zero emission vehicles will have a standard rate of £0 but if the list price is over £40,000 they will pay the additional rate of £310 a year for 5 years.