Road Tax Changes - What They Mean For You

Posted on 27 March 2017 by CarTakeBack

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You might have heard about the changes to VED (Vehicle Excise Duty), or road tax as it's more commonly known, which come into force from the 1st April 2017, we're here to tell you what they mean for you.

Does it affect your car?

The changes only affect cars newly registered with the DVLA from the 1st April. This means if you're buying a new car on or after that date, your new car will be affected. If you're sticking with your current car or buying a second hand car, that won't be affected.

Will your new car be exempt?

Currently some low-emission diesel and petrol cars are exempt from paying road tax, the changes mean that this will no longer be the case. It will only be free if you're vehicle has no tailpipe emissions, that's just electric and hydrogen powered cars.

How much will you pay?

The tax you have to pay varies for the first year, based on the CO2 emissions of your car. After the first year, it's a set rate per year depending on the type of car you own:

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

There's also a new supplement of £310 to pay for cars that cost more than £40,000, every year, for the first five years!

To find out how much tax you'll pay for your new car visit the DVLA website 

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