New Vehicle Tax Bands

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