New
VED rates for new cars
The current road tax regime is costing the
Exchequer a packet as carmakers have slashed the CO2 emissions of their cars to
take advantage of the generous VED tax bands for new lower-emissions vehicles.
New cars registered after April 1st 2017 will pay a one-off tax charge
for the first year, with rates decided by a heavily revised version of the current
CO2-based tax band system. The adjustments mean most buyers will see their first
year tax charge virtually doubled, while only zero-emissions vehicles will get
away with paying nothing at all. From
the second year onwards, the CO2 scale becomes irrelevant, as two flat rates will
then be applied – a £0 (zero) VED rate for zero-emissions vehicles
only, and a flat annual rate of £140 for all other cars. See the report
on the Auto
Express website.
Posted: 170204 |  | From
1st April 2017 the Vehicle Excise Duty CO2 bands are changing for all new cars.
In short, new low emission cars that would previously have been VED exempt will
now have a fee for the first five years of ownership. The first year fees are
either less or more than the subsequent years depending on the band. The first
year fees can be hefty if you buy a less economical car - anything up to a staggering
£2,000 (for new cars over 255g CO2/km - see the table alongside). So this
is serious stuff for new car buyers. The only new cars exempt from VED under the
new scheme are zero emissions cars - totally electric. You can see full information
on the VED rates on the DVLA
website.
When the delivery waiting time following ordering a new vehicle
is considered, there is now only a couple of months left to order before you can
no longer get the current VED rate for a new car. The good news is these VED
tax changes only apply when buying brand new cars, so used car purchases won't
suffer the rate changes.
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