The way Vehicle Excise Duty (VED) is calculated is changing for some vehicles registered from 1 April 2017. First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. A flat Standard Rate of £140 will apply in all subsequent years, except for zero-emission cars for which the standard rate will be £0.
Cars with a list price above £40,000 will attract a supplement of £310 on their standard rate for the first 5 years in which a standard rate is paid.
All cars first registered before 1 April 2017 will not be affected.
The new rates and bands for cars registered on or after 1st April 2017 are displayed in the table below:
|VED Bands and rates for cars first registered on or after 1st April 2017|
|Emissions (g/CO2/km)||First year rate||Standard rate*|
|*Cars with a list price of over £40,000 when new pay and additional rate of £310 per year on top of the standard rate, for five years.|
Ensure you benefit from the savings associated with purchasing your new vehicle before the introduction of the new road tax rules. For more details or to make an enquiry please contact a member of our team at Roger Young.