Do you know how the 2017 car tax changes will affect you?
As part of the Government’s quest to raise money to help repair the nation’s roads, new road tax rates, or Vehicle Excise Duty (VED), are being introduced for all new cars registered after 1st April 2017 warns JCT600.
With car manufacturers now able to make their cars cleaner and more efficient, the generous rate of Vehicle Excise Duty was being taken advantage of. According to the current rules, any new car that was below band D (121 – 130g/km CO2) did not pay a significant amount of annual road tax.
For cars registered after 1st March 2001, there will be no road tax changes and they will continue to pay the current road tax rates. These are set out with two different rates of tax: one that applies to the first year only; and a second that applies for that year and every subsequent year i.e. first year = £0 and second year onwards = £30.
The Vehicle Excise Duty rates were set out based on your car’s CO2 emissions, with different rates set out for alternative fuel cars such as hybrids, biofuels or gas. For tables of current bands for CO2 emissions and road tax rates, as well as the new road tax rates that will be in place after April 2017, click here
You can also find out exactly what the changes mean for cars registered before March 2001; and whether or not you will be paying more.
2017 Car tax changes: In a nutshell
Any car registered after 1st April 2017 will be subject to the road tax changes.
For cars registered between 1st March 2001 and the end of March 2017, the car tax rates set out in 2015 will continue to apply.
The only vehicles that will be exempt from paying any car tax will be electric cars or low-emissions cars that were registered before 1st April 2017 or cars with zero CO2 emissions priced under £40,000.
