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New car tax amounts from 1st April 2017. 13/03/17

The government is changing the way everyone pays road tax from the 1st of April this year and it could be especially significant if you are about to buy a new car.

Those who are looking to buy a new vehicle with low CO2 emissions are likely to notice the biggest increase in tax.

At the moment many low carbon emission vehicles are exempt from the tax but this will change on the 1st April with the introduction of 3 tax 'bands' - zero, standard and premium which will determine how much tax you pay.

Only cars that produce zero CO2 emissions such as electric or Hydrogen powered vehicles will be completely exempt from tax after the new regulations.

The first year of registration will incur the greatest amount of tax relative to the CO2 output of the vehicle, with the vehicles producing 256g/km or more CO2 incurring a tax of £2000 and vehicles with 1 - 50 g/km emissions incurring a tax of £10.

From the second year onwards all qualifying vehicles will have to pay a standard yearly rate of £140 for the life of the vehicle.

Cars registered before 1st April 2017 are not affected by the new Vehicle Excise Duty changes.

All content is believed to be correct at time of publication.
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