New Vehicle Tax Bands

on Wednesday, 22 February 2017. Posted in Car Buying Advice

New Vehicle Tax Bands

Tax bands for cars registered after April 2017 are changing.

VED better known as Vehicle Excise Duty

The new VED bands will apply to all cars registered from 1 April 2017 onwards. A CO2 based rate will still mandate the first year fee – but only zero emissions vehicles will be exempt from the tax. Cars registered before April 1st 2017 will continue to be taxed under the old system.

After the first year, a flat fee of £140 applies for all vehicles not categorised as zero emissions, although alternative fuel vehicles get a slightly cheaper fee, at £130. The revenue from the revised VED scheme will flow into a new road fund for road repairs and maintenance.

In addition cars with a list price above £40,000 will be required to pay an extra £310 every year for the first five years.

That means electric cars over £40k will pay £310, alternative fuel vehicles will pay £440, and petrol or diesel cars will pay £450. After five years, these rates change to zero, £130 and £140 respectively.

Another reason to choose a pre owned vehicle

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