The rates explained
Vehicle tax for the first year is based on CO2 emissions.
After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:
- £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
Auto Express have made some useful comparisons
You can read their full article by clicking here http://www.autoexpress.co.uk/car-news/consumer-news/88361/tax-disc-changes-everything-you-need-to-know-about-uk-road-tax
| Highest proportionate increase | CO2 emissions | Current First Year Rate | New First Year Rate | Three years’ tax current rate | Three years’ tax new rates | % change three year ownership |
| Peugeot 208 1.2 PureTech (82) Allure | 104g/km | £0 | £140 |  £40 | £420 | 950% |
| Ford C-Max 1.5TDCi (120) Zetec | 105g/km | £0 | £140 | £40 | £420 | 950% |
| VW Passat 1.6 TDI S | 105g/km | £0 | £140 | £40 | £420 | 950% |
| Nissan Qashqai 1.6 dCi  (130) N-Connecta |  115g/km | £0 | £160 |  £60 | £440 | 633.3% |
| Lowest proportionate increase | ||||||
| SEAT Alhambra 1.4 TSI (150) | 150g/km | £145 | £200 | £435 | £480 | 10.3% |
| Ford Mondeo 1.5 EcoBoost Titanium |
134g/km |
£130 |
£200 |
£390 |
£480 |
23.1% |
| Jaguar XE 2.0i R-Sport (auto) |
179g/km |
£355 |
£800 |
£815 |
£1,080 |
35.8% |
| Toyota Verso 1.6 V-Matic Icon | 154g/km | £185 | £500 | £555 | £780 | 40.5% |
| Honda CR-V 2.0 i-VTEC SE 4WD | 173g/km | £300 | £800 | £720 | £1,080 | 50% |
Why has government changed the rates?
Basically too many cars are now low in CO2 that not enough tax is being collected!
| New VED system – for cars registered from April 2017 | ||
| Emissions (g/CO2/km) | First year rate | Standard rate* |
| 0 | £0 | £0 |
| 1-50 | £10 | £140 |
| 51-75 | £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 |
| *cars over £40,000 pay £310 supplement for 5 years | ||
