Planning to buy a new car this year? How will the new vehicle tax rates affect you?

//Planning to buy a new car this year? How will the new vehicle tax rates affect you?

Planning to buy a new car this year? How will the new vehicle tax rates affect you?

Did you know the way vehicle tax is calculated for new cars will be changing from 1 April 2017? There has been a significant downward trend in vehicle tax in recent years as manufacturers produced vehicles with reduced C02 emissions which in turn has meant the government vehicle tax income has been falling. That trend is about to be reversed as the value of the vehicle will be taken into account. For instance, if you buy a vehicle after 1st April with a list price of over £40k, you are in for a sharp rise.

The good news for motorists is the changes won’t affect your current vehicle or any vehicles registered before April. Also for anyone who opts for an electric vehicle after 1st April, you will still enjoy low tax rates. One of the other categories affected will be hybrid vehicles, they currently benefit from low tax rates but they will see a hike too. Here is a quick guide on the new rates.

Similar to the current regulations, cars will be divided into 13 different CO2 brackets to determine how much you pay in the first in the first year ownership.

After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:

CO2 Emissions (g/km)              First Year Rate                     Standard Rate*

0                                                     £0                                           £0

1-50                                                £10                                        £140

57-75                                             £25                                         £140

76-90                                             £100                                     £140

91-100                                           £120                                      £140

101-110                                          £140                                      £140

111-130                                          £160                                      £140

131-150                                         £200                                      £140

151-170                                         £500                                      £140

171-190                                         £800                                      £140

191-225                                         £1200                                   £140

226-255                                        £1700                                   £140

Over 255                                       £2000                                  £140

New vehicles with a list price of more than £40,000

  •  £140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
  • £0 a year for vehicles with zero CO2 emissions

If a vehicle has a list price (the published price before any discounts) of more than £40,000, the rate of tax is based on CO2 for the first year.

After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130, or £0, depending on vehicle type).

From the second year onwards, zero emission vehicles costing less than £40,000 remain tax free; petrol, diesel and hybrid cars that cost less than £40,000 are charged at a flat rate of £140 a year and cars that cost over £40,000 a year attract an additional premium fee of £310 for years 2-5 of ownership, regardless other emissions.

So if you are looking to buy a new car it would be wise to do your research and you might save a some Future motoring Costs if you Act sooner.!!

 

2017-02-21T14:49:32+00:00