Search our car and van leasing deals
Search by vehicle type
Car search
Search by monthly budget
Select your price range
Keyword search
Quick contact

Quick contact

Contact us Quote Newsletter subscribe

Road tax (or vehicle excise duty) will go up in 2017

From 1 April 2017, some of the most extensive changes to the UK’s road taxing structure will take place. Any new car registered after this date will be subject to the new rules. Generally, most cars will cost slightly more to tax than they did previously, leaving only cheaper electric cars with tax-free status. If you’re concerned the car you have your eye on might cost more to tax in April, now could be the best time to buy it. Check out carwow’s latest savings using our car deals page or head over to our handy car chooser tool for help narrowing your search. The older system meant even fairly normal cars were getting away with paying no road tax Why is road tax changing? When the outgoing system was conceived, taxation was linked to a car’s CO2 output – this meant that cheaper, more efficient cars paid a relatively small amount while pricier, more polluting cars paid much more. The problem with this system emerged when it became clear to the treasury that, thanks to greatly improved engine and vehicle design, many normal cars were emitting such little CO2 that they actually fell into the tax-free bracket. This lowest band was originally intended for electric, hybrid and niche low-emission cars but, as technology has improved, more conventional cars wound up here and paid no tax. To bolster its cashflow, the government has introduced this new taxing regime to push more conventional cars back into taxation and reserve tax-free status for a handful of zero-emission cars. What are the 2017 road tax changes? As before, you’ll have to pay a first year tax rate that’s linked to the car’s CO2 emissions, followed by a standard rate for each year after that. The standard rate for every car is £140 per year but models costing more than £40,000 (after options) will incur an additional £310 cost, meaning most premium models will now cost £450 in total per year to tax. Any zero-emissions vehicle – i.e. electric cars – won’t incur either the first year or standard rate of tax but, unlike previous years, this no longer applies to plug-in hybrid models that still use a conventional combustion engine. If, however, your zero-emission vehicle costs more than £40,000 – such as a Tesla Model S – you still incur the £310 additional cost for the first five years of ownership before returning to tax-free status. As before, tax is no longer transferrable between owners. This means if you sell your car, the new owner will have to tax it themselves – any remaining tax on the vehicle can be claimed back from the government. Also unchanged is the £10 reduction in tax rates for alternative fuel vehicles such as those converted to run on LPG. 2017 UK road tax bands

Share this article Email this pagePost this page to facebookTweet this pageGoogle+ this pagePost this page to LinkedinPin page

Posted on 20th January 2017 at 9:44 AM

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time. Close this message.