As of April 1st 2017, the way Vehicle Excise Duty is calculated is changing.
If you purchase a vehicle after this time, your new first year tax rate will be calculated based on your vehicle's CO2 emissions. The table on the right (Direct Gov, 2017) highlights the new rates that you will be charged.
After the first year rate, most vehicles will then move to an £140 standard annual rate. However, if your vehicle cost over £40,000 to buy, you will continue to pay the additional rate (£450) for five years after the first year rate.
The good news is, this doesn't affect any vehicles registered before April 1st 2017; those vehicles will remain on their current tax band.
|Specification||Current Tax||New First Year Rate||Standard Rate Thereafter|
|2.5 Hybrid Petrol (197 hp) Automatic 118g/km||£20||£160||£150*|
|2.0 Petrol (151 hp) Automatic 152g/km||£185||£500||£140|
*Hybrid vehicles are based on alternative rates which can be found here.
The table above shows how the increase will affect the vehicle you buy. For example, the Rav 4 Icon 2 litre will increase by £315. So if you're thinking of buying your new car, make sure you do it soon and beat the tax man! As long as your new vehicle is registered by 31st March 2017, you will only pay the old tax rates.
Act now and find out what Snows Group can do for you before March 31st to avoid the increases! We will be sure to find the perfect car to suit your needs and budget!